MADRID (Reuters) - Insurers Generali and Zurich will invest in a Spanish bank set up by the government to manage toxic property assets, three sources familiar with the situation said.
They said the Italian and Swiss insurers would invest 5 million euros ($6.7 million) each in the "bad bank", which was set up as part of a 40 billion-euro European bailout of Spanish lenders that were laid low by a property crash five years ago.
It is only a fraction of the 5 billion euros in private capital the entity needs as it prepares to take on more property assets from the troubled lenders at the end of February – most of that has already been raised from healthier Spanish lenders such as Santander.
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