Spain says stricken banks need €59.3 billion

Spain’s stricken banks need €59.3 billion to fix balance sheets hammered by a 2008 property market crash, an independent audit showed yesterday.

Of 14 banking groups examined in a stress test, rescued lender Bankia had the greatest capital needs, estimated at €24.7 billion, said the audit released by the Bank of Spain.

The audit, led by US financial consultants Oliver Wyman, serves as the basis for the release of up to €100 billion from a eurozone rescue loan agreed in June.

But the final amount to be used from the banking bailout may be “significantly less” as the lenders may find cash through asset sales, private capital, losses forced on investors or by transferring assets to a bad bank.

Seven of the banks had no need of extra money to survive a “very adverse scenario” with three years of heavy losses, it said. (AFP)