Eurozone stock indices subdued as Spain bank restructure cleared
City Index November 28, 2012 5:15 PM
<p>The eurozone’s major stock indices have lost ground following news of Spain’s bank streamlining.</p>
The eurozone's main stock indices are subdued in trading this morning (November 28th) on news Spain's bank restructuring has been signed off by Brussels.
Today, the European Commission cleared the way for four of the troubled Iberian nation's biggest banks – Bankia, Banco de Valencia, Catalunya Banc and NCG Banco – to be streamlined as part of the sector's major overhaul.
Spain has secured funding of up to €100 billion (£80 billion) from its eurozone partners in June of this year to help shore up its banks, which have been seriously damaged by the build-up of bad debt in a property bubble that burst in 2008.
The Commission said the restructuring of these financial institutions will enable them to "become viable in the long-term without continued state support".
At 11:30 GMT, the Madrid Ibex slipped by 0.8 per cent to an index value of 7793.6 points, while the pan-European DJ Eurostoxx index retreated by 0.4 per cent to 2532.2 points.
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