Spain weighing amount of aid for savings banks

Spain weighing amount of aid for savings banks - Bloomberg: "Spain's Finance Ministry says it will wait for results of a report on the health of the country's troubled saving banks later this month before deciding how much capital the banks need.

The Wall Street Journal says Spain is preparing to issue euro3 billion ($4 billion) in debt in coming days for the banks and could eventually raise as much as euro30 billion. It cites unnamed sources familiar with the situation.

A spokeswoman for Finance Minister Elena Salgado said Thursday that Salgado does not expect the injection to reach euro30 billion. The spokeswoman spoke on condition of anonymity in keeping with policy.

Spain's savings banks represent roughly half of the country's financial system. They were left with bad loans after a building boom went bust."

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