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Spain to sell more of Bankia

 

Spain is looking at the possibilities of selling a stake in the state-owned bank, Bankia, later this year.

 

 

Luis de Guindos, Economic Minister

The Economy Minister, Luis de Guindos, said they are estimating the stake would be around 7 percent.

 

Bankia, the fourth largest bank in the country, has approved merging with BMN bank, which is also partially state-owned. The merge is likely to happen later this year, after a deal is confirmed in September.

 

 

The reason of the merging is part of a scheme to help the state recover from its economic crisis. If the merger is approved, it will leave the state with 66.56 percent of the new entity. The shareholders of the banks will hold 33.1 and 2.33 percent of shares respectively.

 

 

 

The Spanish government sold a stake before in 2014 in Bankia, and in December, it passed a law giving until the end of 2019 to privatize the bank. This comes after the bank’s rescue back in 2012.

 

By increasing the percentage of publicly traded shares, the bank could prove more attractive for investors.

 

The Economic Minister is looking for the economy to continue growing this year, and expects a 3 percent GDP growth.

 

Unemployment, currently at 18.8 percent, is also predicted to fall under 17 percent, with hopes to being as low as 7 percent by 2022.

 

 

 

 

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