Brussels, 27/06/2012 (Agence Europe) - On Wednesday 27 June, the European Commission temporarily approved (for six months) a conversion of existing state-owned preference shares of €4.465 trillion into equity and a liquidity guarantee amounting to €19 billion in favour of the Spanish BFA group and its subsidiary Bankia. Spain has pledged to provide a restructuring plan for BFA and Bankia within six months. The Commission will make the final decision on the aid when it has examined the restructuring plan. The approved aid does not include announced capital injections sought by BFA and which are currently under assessment by the Spanish authorities.
Commenting on the Commission's decision, EU Competition Commissioner Joaquín Almunia said: “There is no doubt that the beneficiary will need to undergo deep restructuring. The conversion of preference shares into capital will simplify the ownership structure of BFA, which becomes fully state owned, thus making the necessary restructuring decisions easier to take.” (OL/transl.fl)