Spain's savings banks, considered a fiscal liability for the government, have seven months to raise capital through private investors or the state will partially take them over, Economy Minister Elena Salgado said on Monday. Concerns that Spain's savings banks, which account for 50 percent of the financial system, will require an expensive bailout have weighed on the country's sovereign debt and fueled fears it will need an EU/IMF-backed bailout like Ireland. "The government considers it necessary to take a number of measures to dispel any doubt over the solvency of our credit entities and their ability to withstand shocks even under the most adverse scenarios, and so ease their access to capital markets," Salgado said during a news conference.
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