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Spain's bad bank raises 14.1 bn euros

Published on Feb 27, 2013 6:14 AM

MADRID (AFP) - Spain's "bad bank", key to cleaning up the country's financial system, said on Tuesday it had raised 14.1 billion euros (S$22.8 billion) in funding as it prepared to take on billions in more bad loans.

The sale of the subordinated bonds, along with those placed earlier this month, will help the bank, Sareb, absorb later this week a second batch of bad loans.

Four nationalised banks, including Bankia, transferred 36 billion euros in bad loans to Sareb last month as part of an effort to clean up balance sheets after Spain's property bubble burst in 2008.

Four other troubled lenders are to transfer billions more by Thursday. Three banks, Caja3, CEISS and BancoMareNostrum (BMN) have announced they will unload around 11 billion in problem loans.

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