Date: Thursday 14 Jun 2012
Spain's Fund for Orderly Bank Restructuring (FROB) has announced that it does not plan to liquidate any credit entity under its administrative control.
The announcement followed speculation arising from statements made by European Union Competition Commissioner Joaquin Almunia.
In compliance with legislation governing the entity, the FROB will continue to carry out the orderly restructuring of these entities and thus maintain their normal operations, the FROB said in its press release.
On Wednesday, Almunia said that one of the nationalized banks, CatalunyaCaixa, NCG Bank, and Banco de Valencia would be closed. "If I am not wrong, one of the three, according to the intentions of the Spanish authorities, is oriented towards a liquidation and not to maintain them after restructuring as a going concern," he told Reuters in an interview.
Banco de Valencia stated that the only scenario in which it was working on was a sale and CatalunyaCaixa said that the ongoing process for its auction was completely active.
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