EU regulators clear Bankia state aid

Spanish lender Bankia gained temporary approval yesterday for its state bailout, but Spanish authorities will need to present a restructuring plan within six months to offset this support, the European Commission said. The EU executive said the state aid included a conversion of existing state-owned preference shares of €4.465bn into equity and a liquidity guarantee amounting to €19bn in favour of the Spanish BFA group and its Bankia unit, but does not cover a request for a further €19bn capital injection.