Spanish banking group BBVA will take over the nationalised Unnim Banc, the result of the 2010 merger between troubled ‘cajas’ Caixa Sabadell, Caixa Terrassa, and CaixaManlleu.
Spain’s Fund for Orderly Bank Restructuring (FROB) accepted the deal yesterday in an auction attended by Ibercaja, Santander, and Banco Popular. The price of the deal is a symbolic EUR1. Spain’s Deposit Guarantee Fund (DGF) will cover the losses derived from the operation for the amount of EUR953m.
The FROB explained that the DGF will also establish an asset protection scheme whereby it will bear 80% of the losses derived from a predetermined asset portfolio for a period of 10 years, after the provisions for these assets have been used.
‘It should further be noted that, in view of the participation of the DGF in the above-mentioned restructuring plan, the orderly restructuring of Unnim Banc is not expected to have any impact on the State budget outturn,’ the FROB said in a statement.