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Spain to liquidate Banco de Madrid

Xinhua, March 20, 2015 Adjust font size:

Spain's Fund for Orderly Bank Restructuring (FOBR) decided Banco de Madrid, which filed for insolvency on Monday, needs to be liquidated, economics newspaper Expansion reported Thursday.

The decision was transmitted to the judge, who is in charge of announcing the forthcoming steps.

As a result, Spain's Deposit Guarantee Fund (FGD) announced they would refund Banco de Madrid clients up to 100,000 euros (106,436 U.S. dollars) of their deposits.

Banco de Madrid has around 15,000 clients with around 675 million euros. However, only 500 have more than 100,000 euros, Expansion said, adding that the FGD probably would not have to return more than 200 million euros.

Banco de Madrid announced insolvency proceedings on Monday following important fund withdrawals. The bank was taken over by the Bank of Spain last week as a result of a money-laundering scandal in its mother company, Banca Privada d'Andorra (BPA). Endit