madrid (reuters) – banco popular has requested emergency liquidity from the european central bank on june 5 and 6, but these reserves have been exhausted, the bank so fast, had no choice but to ask for a bailout, said monday the spanish minister for the economy, guindos luis.
“she had to seek emergency liquidity from the european central bank on monday and tuesday, tuesday at 3:00 the reserves were exhausted, and she was no longer in a position to ask for more because of the collateral,” said the minister at a hearing in parliament.
banco santander, the spanish bank, announced the next day, june 7, the purchase for one symbolic euro of banco popular, following a statement by the bank that it would wind up.
luis de guindos stressed that the implementation of the rescue, “while in”, a new method of treatment of banks with great difficulty in the eu, adopted in the wake of the financial crisis, had caused no contagion to the rest of the spanish banking sector.
(julien toyer, veronica poker, for service in french)
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Translated by forexguides.info Team