Only 5 percent of Spain’s bank aid recovered

Only 5 percent of Spain's bank aid recovered
Bankia president Jose Ignacio Goirigolzarri (C) during a shareholders meeting in April. Jose Jordan/AFP
Spain has recovered only five percent of €51.3 billion ($57.2 billion) of state aid given to the country's banking sector since 2009 to prevent its collapse, the Bank of Spain said on Monday.

A total of €53.55 billion were provided to Spain's banking sector via a restructuring fund in the aftermath of the financial crisis, including €2.25 billion of contributions from the private sector.

Of the remaining 51.3 billion euros, only €2.67 billion have been recovered, the Spanish central bank said.

Spanish banks were battered when the country's housing bubble burst in 2008, spurring the state to nationalise some of them, with the European Union also providing aid.

Madrid has since sold Catalunya Banc, among the banks that were nationalised, and reduced its share in Bankia, but the funds from the latter sale have yet to be recovered by the restructuring fund.