Bloomberg News

Spain Won’t Sell Catalunya Banc at a Loss, Economy Minister Says

March 05, 2013

Spain won’t sell nationalized lender Catalunya Banc SA at a loss because it’s now a solvent bank, Economy Minister Luis de Guindos said.

“There is no question of selling such institutions at a loss,” de Guindos told reporters in Brussels today. Spain’s bank rescue fund, known as FROB, said last night in an e-mailed statement that it had suspended a planned sale of the bank.

Spain has taken about 40 billion euros ($52 billion) of European aid to bail out lenders including Barcelona-based Catalunya Banc, which was nationalized in 2011. FROB said in its statement that it had time to find the best option for dealing with the lender that would minimize the cost to the taxpayer because the sale deadline set by the European Commission is the end of 2016.

To contact the reporters on this story: Charles Penty in Madrid at cpenty@bloomberg.net; Angeline Benoit in Madrid at abenoit4@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net


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