newspaper tonight is following up on this blog's concerns of this morning on likely problems for Britiah Airways from the ever deepening Bankia banking disaster, on which the same newspaper has further startling developments this evening at the start of that aricle, read here.
A brief quote on the reported desperate moves to directly involve the ECB in keeping the stricken financial dinosaur afloat is here:
Spain is considering proposals to inject €19bn (£15bn) of capital
into nationalised Bankia in the form of government debt that could then
be used to raise money from the European Central Bank (ECB), forcing it to get involved in what may become a far wider bailout of Spain's creaking banking sector.
Details remain sketchy, but sources in Madrid confirmed that a refinancing
involving the ECB was the most probable way forward for a Spanish
government that will have trouble raising €19bn itself at a manageable
By avoiding the markets altogether, the government would indirectly "push the financing of Bankia's bailout on to the ECB",
according to El País newspaper.
Labels: Bankia, Now Spain