Spanish government part nationalizes bank to save it from collapse

Spain's government has plowed public money into an ailing bank, taking over a 45 percent share and saving it from collapse. Bankia, which has billions of euros in distressed property assets, will be part nationalized with a EUR 4.47 billion loan from the Spanish state. After the announcement, finance minister Andreu Mas-Colell demanded “maximum transparency” to ensure that the state gets value for money in the move. He also hinted that this may not be the last public bailout for banks, warning that CatalunyaCaixa and Unimm could find themselves in a similar situation soon. Spain's opposition Izquierda Unida has slammed the deal, with opposition politician Cayo Lara saying the bank should be fully taken over by the state or not at all. Meanwhile, Andreu Mas-Colell, said he understands public outcry against the injustice of citizens essentially paying for the bank's mistakes, but justified the bailout on the grounds that the health of the country's financial system must come first. Elsewhere in the media, questions over whether Spain can afford to save its banks and if this is another step towards the country needing a Greece/Ireland/Portugal style EU bailout have been raised. Liam Lever, liam@romania-insider.com