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Earlier date for Spanish funding

Nick Clark
Monday 31 January 2011 01:00 GMT
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The Spanish government will offer state funding to struggling savings banks that are unable to raise finance from the private sector, starting in March.

The economy ministry detailed the plan yesterday after fears that some smaller groups would not make it through to September, the original date for state intervention if no private investment is found.

The government has effectively brought forward the deadline. "The time limit is September, but if capital is needed before then, it will be available," an official told Reuters. Spain has injected €11bn into its savings banks so far, from a fund whose capital could reach €99bn.

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