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Spain to get EU bank aid in exchange for job cuts
Guardian UK ^

Posted on 11/25/2012 10:09:20 PM PST by Arthurio

Reuters in Madrid, Sunday 25 November 2012 10.29 EST

European authorities will transfer €35bn (£28bn) to Spain's state bank rescue fund on 15 December in exchange for massive layoffs at the country's four nationalised banks, including the state-rescued Bankia, according to reports.

The cash injection from European bailout funds will be disbursed to troubled Spanish banks two weeks after it is paid into Spain's orderly bank restructuring fund, according to El País.

Bankia, which sought a €23.5bn bailout from the state in May, is expected to be forced to axe up to 6,000 of its 20,000 staff, while Novagalicia bank must shed 2,000 jobs from of its workforce of 5,800, said the newspaper, citing European and banking sources.

Bankia and Novagalicia declined to comment on the report, which also revealed the banks would have to close a total of 1,000 branches.

(Excerpt) Read more at ...

TOPICS: News/Current Events

1 posted on 11/25/2012 10:09:32 PM PST by Arthurio
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To: Arthurio

i’m not a smart person but isn’t the real issue jobs? I understand the banks are overstaffed but this will just mean a bunch more people in Spain,just as has happened in Greece,without jobs depending on government social programs to get by. Is it any wonder Greece never meets it’s economic projections? will Spain be any different?

2 posted on 11/26/2012 4:20:25 AM PST by wiggen (The teacher card. When the racism card just won't work.)
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