Spain to use $37 billion for bank restructuring

MADRID - Spain expects to use about 30 billion euros ($37 billion) to cover the financial needs of banks engaged in the restructuring processes, Economy Minister Elena Salgado said Thursday.

The bank restructuring fund FROB can issue up to 99 billion euros to lenders, Salgado told the television channel Telecinco. She estimated that “less than a third” of that amount would be needed.

The fund was “more than enough” to cover all the needs of the Spanish financial sector, Salgado said - again denying reports that Spain was about to apply for aid from a European Union rescue mechanism for countries drifting into a Greek-style funding crisis.

Markets “will regain trust in us,” Salgado said.

There is concern especially over the stability of Spanish savings banks, which control about a half of the country’s lending business.