Spain Adds More Cash to Bailout Fund

An additional $7.5 billion has been injected into Spain's fund for failing banks.

The Spanish government is injecting another €6 billion ($7.5 billion) into its bank rescue fund to cope with growing problems in its ailing financial sector.

An official with the Economy Ministry, speaking on condition of anonymity because of government policy, confirmed the extra cash will raise the capital base of the bank rescue fund to €15 billion, AFP reports.

The alleged emergency injection into the rescue fund, which is to provide aide primarily for Spain's nationalized lender Bankia, comes ahead of a much bigger injection by Spain's Eurozone neighbors. To cope with the growing burden of helping its banks, Spain has formally asked for a loan from its 16 Eurozone partners of up to €100 billion. The government expects to get the loan by early November, once the banks' restructuring plans are unveiled in the middle of this month.