The Fund of orderly bank restructuring (FROB), which has been set up by the government to infuse capital into struggling financial firms, said that it will inject the necessary capital to Bankia.
The government said that due to urgency of capital infusion and time consuming process of European bailout package, it will use FROB, which has €120bn capital.
Bankia had sought €19.5bn in new capital, however, it has not been disclosed how much capital will be injected.
The FROB issued a statement and said, "The recapitalization, the segregation of assets, and the restructuring will guarantee the solvency and the long term visibility of BFA /Bankia Group, which will ensure the continuous access of external financing."
The government nationalized Bankia said that the firm had lost €3.268m only on current accounts and savings, and in sight deposits totaled to €6.388m.
