The Bank of Spain has today announced their intention to sell Unnim, a loss-making savings bank, to BBVA for the princely sum of one euro.
Unnim, created with the merging of three smaller savings banks, was taken over by the central bank in September 2010 after failing to meet minimum-capital requirements.
It is one of five banks taken over by the central bank following the collapse of the property market in 2008 which left much of the country’s banks with huge debts.
The bank has experienced losses of 953 million euros which will be absorbed by Spain’s bank deposit guarantee fund before being sold to BBVA, the second-biggest bank in Spain, in terms of assets. The fund will also assume 80% of Unnim’s future losses for a period of 10 years.
During the first nine months of 2011, Unnim notched up losses of more than 107 million euros.
BBVA president Francisco…
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