The procedure for receiving the funds for the recapitalization of the financial sector culminates today with the formal request for 36,968 million euros for the four nationalized entities (BFA-Bankia, Catalunya Banc, NCG Banco and Banco de Valencia), as well as the 2,500 million euros earmarked for the contribution of the FROB to Sareb (Asset Management Company from Bank Restructuring). It is expected that the receipt of these funds by the Spanish from the European Stability Mechanism (ESM) will occur around December 12.

This final part of the process started last Wednesday, November 28, when the European Commission approved the restructuring plans of the financial institutions of the so-called Group1 (the nationalized ones). The measures allow the injection of 17,960 million euros into BFA-Bankia; 9,080 million in Catalunya Banc, 5,425 million in NCG Banco; and 4,500 million in Banco de Valencia. The transfer will take place through five series of debt instruments exchangeable for cash at maturity.

A day later, on November 29, the Financial Assistance Agreement was signed, which includes the set of documents that establish the specific terms and conditions of the MEDE loan to Spain. On the same day, the European partners gave the go-ahead to the planned transfer of funds. For its part, the Council of Ministers last Friday took note of the subrogation of all of Spain's commitments from the European Financial Stability Fund (EFSF) to the ESM. Tomorrow the MEDE acceptance of the request for funds is expected to be signed.

On June 24, Spain requested financial assistance from the Eurogroup for the recapitalization of Spanish banks to a maximum of 100,000 million euros. At the time, a Memorandum of Understanding (MoU) was signed, with a series of commitments that are being fulfilled according to the planned schedule. Among them, the presentation of restructuring plans by financial institutions and the constitution of Sareb stand out.



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