Bankia recovery estimated at 7 bln euros

Bankia has been nationalised on request of the financial institute itself and will lead to a ''further readjustment of around 7 billion euros,'' as well as the 4 billion already allocated in 2010 to cover the extra reserves requested by the Spanish government. This was explained today by Spanish Economy Minister Luis de Guindos, who spoke in Madrid during the economic forum Cinco Dias. Meanwhile, the new president of Bankia, Jose' Ignacio Goirigolzarri, is preparing a roadmap for the bank, including a request for additional state aid in the form of capital injections or convertible bond issues. The plan may be presented this week, according to the economic press. According to de Guindos, today Bankia is ''more secure than one month ago'' thanks to the state aid it has received, and has ''good liquidity.'' On Wednesday the minister will explain the nationalisation of Spain's fourth-largest bank in Congress. De Guindos also announced that government outlook on the Spanish economy for the second quarter of this year confirms that the recession continues, with a negative GDP of 0.3%. Still, the minister added, ''the foundation is being laid for a future recovery, which will generate new wealth and work.''