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Insists Spain’s newest airline, Iberia Express. PAGE 6
iSSUE 656
11 - 17 MAY 2012
Denia Hospital second RTN legal Divorce and separation in best in Europe for Spain when a property is electronic medical involved. records. PAGE 8 PAGE 22
Life showbiz goss The truth behind Cameron and Bob. PAGE 42
Spain bails out Bankia THE GOVERNMENT has taken charge of its fourth largest banking group.
by jan gamm
RTN menmbers Graham Babbington and Mark Hampson with Shirley Adams from Lloyds
RTN’s Golf Club day
Conditions were perfect on Tuesday for RTN Golf Club Members Competition at El Plantio Golf Course in Alicante. Golf Club sponsor, Lloyd Bank International, and RTN had a great day meeting members and watching them tackle the challenging 18 hole course. Read the full story on page 13.
Bankia was created in 2010 with the merger of seven smaller banks - Caja Madrid, Bancaja, Caja de Canarias, Caixa Laietana, Caja de La Rioja, Caja Ávila and Caja Segovia. Bankia is now facing collapse as it struggles to survive in the face of bad loans and risky assets. Its shares plummeted on Wednesday by as much as 8 percent - €700 million in losses - in anticipation of state intervention: a large scale rescue package could throw Spain’s fiscal solvency into question and de-stabilise the Euro zone. Many economy experts consider the successful rescue of Bankia to be the key to restoring confidence in Spain’s finances. Initially the state has taken a 45% indirect stake in Bankia, controlling its parent company BFA by converting a previous €4.5 billion loan to the financial group into equity. And a further loan of €10 million or more could be on the table to put Bankia’s balance sheet back on track. RESIGNATION As news broke of the imminent rescue deal, Bankia’s chairman Rodrigo Rato promptly turned in his resigna-
tion: “I have decided to pass the baton to a new manager to decide what is best for this entity,” he said. Rato was Spanish Economy Minister from 1996 - 2004 and managing director of the IMF until 2007. His replacement is the former chief executive of Spain’s second-largest bank BBVA, Jose Ignacio Goirigolzarri. Well respected in the financial sector, Goirigolzarri is thought to be amply qualified to lead a Spanish bank out of difficulties. The economy ministry insists that under Goirigolzarri, Bankia will have to sell off assets and strengthen its management in order to “restore market confidence.” U-TURN Prime Minister Mariano Rajoy this week u-turned on his promise not to prop up the banking sector with public funds: speaking to radio station Onda Cero he said, “The last thing I want to do is lend public money as in the past, but if it is necessary to achieve the credit needed to save the Spanish banking system, I wouldn’t renounce that.” Continued on page 3