Spain to Bail Out it's Banks

While all of Spain's major banks passed last year's European Union-organised bank stress tests, five out of the 19 cajas included in the test failed it.

Speaking before the announcement of the restructuring plan, analysts at ratings agency Fitch said the country would need a "credible" plan to ensure it maintained its sovereign credit rating at its current level.

David Riley, global head of sovereign ratings at Fitch, said he expected the cost of the recapitalisation of the cajas to come in at about €50bn (£42bn) to €60bn.'

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