The Spanish Government is preparing a ‘plan’ to restructure the country’s financial system, particularly the troubled savings banks, in order to reassure the market it is capable of sorting out the financial problems.
Deputy Prime Minister, Alfredo Perez Rubalcaba, said:
The government is preparing a plan, the aim of which is to increase the solvency and the credibility of the savings banks.
The Government is hoping that private investors can be found to put money into the ailing cajas, but it is thought that Spain’s Fund for Orderly Bank Restructuring could take stakes in those that are unable to attract outside investment.
It is also rumoured that, under the plan, forty out of a total of forty-five Spanish cajas will merge or form operating alliances with each other as the authorities look to prevent a wider market run on the country as a whole.
No doubt it will be the taxpayer who foots the bill, as usual.