Bankia confirms subscriptions will be repaid

José Sevilla, Bankia CEO.

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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