By Euro Weekly News Media • 18 February 2016 • 17:51
Image: @mblaszczak/ Twitter
Bankia has confirmed that it will repay 100 per cent of minority shareholder subscriptions, despite an earlier Supreme Court ruling that the state-owned bank would not have to pay back its institutional investors.
The surprise move, announced on February 17, will mark the end of a dark chapter for the bank, while allowing it to forge ahead with restructuring plans as a private institution. In a three page filing with Spanish stock regulator CNMW, Bankia confirmed that in addition to the repayment of the original investment, its minority shareholders would also be eligible to receive 1 per cent annual interest as compensation.
An €1.84 billion provision was set aside in 2015 for repaying small investors and covering outstanding legal costs.
Related Article: Court rules inaccuracies brought Bankia investors losses
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