NEW YORK (
) -- Spain is
to calm investors fears that the banks cannot raise additional funds, according to the
Wall Street Journal
The article, which cites unidentified people familiar with the matter, doesn't specify any banks that would receive the funds. The
said the Spanish government's first step would be to issue around ¿3 billion ($4 billion) in debt in the next few days. As much as ¿30 billion ($40.4 billion) could eventually be raised.
The news comes as European banks prepared for a new round of European Union bank stress tests, Spain's Finance Minister Elena Salgado recently said that Spain's financial system is more sound than before, according to the
The recapitalization of the banks is not a surprise as Spain's prime minister José Luis Rodríguez Zapatero said the banks would undergo a "second round" of restructuring last week, according to an article by
All eight major Spanish banks passed European Union bank stress tests conducted in July. The NYSE-listed shares of
, Spain's biggest bank, closed Wednesday at $11.62, up a penny.
--Written by Maria Woehr in New York.
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