August 06, 2012
Spain's economy minister says the government is set to approve a new law creating an asset management agency, or "bad bank", to deal with the toxic assets that have led many Spanish banks to seek an EU bailout.
The toxic assets - expected to total 200 billion euros ($234 billion) - will be segregated from the banks, and dealt with by the new agency.
Luis de Guindos said on Sunday in an interview with newspaper ABC that the law is up for approval on August 24.
The EU is to provide up to 100 billion euros for banks struggling from non-performing loans, foreclosed property and other unwanted assets resulting from the collapse of Spain's real estate market.
Leading Spanish banks, such as Banco Santander, are not expected to need help.