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.
But Spain has been keen to attract foreign firms as shareholders, in part to lend credibility to the bad bank, known as Sareb.
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