Spain's lender Bankia says it won't need more aid

MADRID

The president of troubled Spanish lender, Bankia, says the bank will emerge as a solid financial entity that will not need further recapitalization after it receives (EURO)19 billion ($23.8 billion) in state aid it has asked for.

Speaking at a press conference, Jose Ignacio Goirigolzarri outlined the bank's restructuring and recapitalization plans, which foresee beginning the injection of state funds in late June, and said one of his priorities was to "strengthen corporate governance."

Goirigolzarri said Saturday the main reason the bank had required recapitalization was the loss in market value of its real estate assets.

Bankia S.A. was created by merging seven regional banks that were deemed too weak to stand alone after becoming exposed to bad loans in Spain's collapsed real estate sector.