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Bankia has record loss of 19.2 billion euros in 2012

Spain's Bankia — formed during the merger of seven failing savings banks — has recorded a loss of 19.2 billion euros, the biggest in Spanish history.

Spain bailout 2012 6 11Enlarge
A statue stands at the Kio Towers, headquarters of Bankia in Plaza de Castilla on June 9, 2012 in Madrid, Spain. Prime Minister Mariano Rajoy agreed with euro members Saturday on a 100 billion euro ($125 billion) infusion of capital for Spain’s financial sector. (Pablo Blazquez Dominguez/AFP/Getty Images)

Spain's Bankia — formed during the merger of seven failing savings banks — has recorded a loss of 19.2 billion euros, the biggest in Spanish history.

According to BBC News, Bankia had received 18 billion euros worth of aid, but had still posted the historic 19.2 billion euro-loss ($25.2 billion) for 2012. Bankia and its parent firm, BFA, had also asked for EU funds last year to help rebuild its capital.

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The banks transferred around $22.3 billion in loans to Spain's new "bad-bank," which takes on toxic assets from the banking sector, reported the Associated Press. BFA put aside provision of 26.8 billion euros as well.

Bankia was hit hard during Spain's property slump, noted the Financial Times. It was nationalized last year after a huge capital shortfall that pushed Madrid to negotiate a bail-out with the EU worth 100 billion euros.

As a whole, Bankia and BFA had a net loss of 21.2 billion euros last year, BBC continued. Its shares were suspended at the beginning of 2013.

http://www.globalpost.com/dispatch/news/business/debt-crisis/130228/bankia-has-record-loss-192-billion-euros-2012