First bank bailout in Spain

Spain's deposit insurance agency is likely to contribute between EUR500 million and EUR1 billion to the bailout of troubled savings bank Caja Castilla-La Mancha.

CCM, as the unlisted savings bank is known, is in talks to be acquired by its larger peer, Unicaja. The funds provided by Spain's Deposit Guarantee Fund would be used to offset the value of CCM's spiraling bad debt. If completed, the transaction would represent the first bank bailout in Spain since the global financial crisis precipitated the collapse of the country's once-flourishing housing market.

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