Spanish banks ‘need €40 billion’ as eurozone ministers prepare for talks
June 9, 2012
Eurozone finance ministers will hold a conference call Saturday as concerns grow over the state of Spain’s ailing banking sector.
The talks come a day after the International Monetary Fund said Spain’s banks need at least 40 billion euros (about $46 billion) in fresh capital to preserve the country’s financial stability.
An IMF mission visited Spain and conducted “stress tests” on banks. In its report, released Friday, the IMF recommended that considerably more capital be set aside for the country’s most vulnerable banks to cover “restructuring costs and reclassification of loans.”