Spanish government unveils bank bailout of up to euro90B

Spain's gov't. unveiled a fund of up to euro90B ($125.46B) to help banks restructure & cope with the effects of recession. Finance Minister Elena Salgado told a news the money will be used for capital injections, to help with mergers & fund restructuring plans. It will have initial seed capital of euro9B, which can rise to euro90B. Spain's banking sector has largely weathered the international financial crisis, thanks to strict financial regulations forcing banks to set aside provisions in an economic boom fueled by construction & consumer spending. But the boom turned to bust in the past 2 years & economy is now in recession, with many banks heavily exposed to the real estate sector and saddled with a high rate of bad loans. He said some banks can be in trouble if the economic crisis continues. "Therefore, we think this is a very good time to carry out orderly process of restructuring our country's financial system, or at least starting it," she said.