Spain needs to tell EC its plans for Bankia

MADRID: Spain must lay out plans for nationalised lender Bankia to the European Commission (EC), a spokesman for the commission saidyesterday, adding a domestic solution to the country’s bank crisis would be better than a European rescue.

Spain’s centre-right government has so far failed to clearly say how it plans to finance a 23.5 billion euro (US$29bil) rescue of the country’s fourth biggest lender, leaving markets confused and driving the country’s borrowing costs to levels at which Ireland and Portugal sought international bailouts.

Prospects that Spain will not be able to handle losses at its banks have pummeled shares and commodities, while pushing the euro to its lowest in almost two years against the dollar. – Reuters