BFA-Bankia, the bank in which the Spanish government recently took 4.5 billion euro stake, needs an additional 7-7.5 billion euros to get it back on its feet, according to Economy Minister, Luis de Guindos.
Over the past few days, the new chief executive of BFA-Bankia, Jose Ignacio Goirigolzarri, has been working on a viability plan for the bank, which will include a request for additional state aid, in the form of capital investment or share options.
Bankia share continued their upward trend this morning, rising 6.89% to 1.87 euros.
The Economy Minister said today that "Bankia is much more secure than it was a month ago", but admitted that it needed a period of "public support" before being "privatised again".
News broke today that the chief executive of Bancaja, José Luis Olivas, has called a board meeting for 7pm in order to tender his resignation.
Olivas already resigned as vice-president of BFA and of Bankia back in November, after the Banco de España had to rescue the Banco de Valencia, in which Bancaja had a 27% share.
Since the resignation of Rodrigo Rato as chief executive of Bankia a fortnight ago, many sources in the financial world had predicted Olivas's resignation.