Banco Popular will try to reduce its toxic property assets by floating a real estate unit worth around €6 billion, reported Spanish newspaper El Pais.
The plan, announced in May, is part of an attempt to reduce property assets by €15 billion by 2018.
In July the bank fired its chief executive and announced a cost-cutting plan, a month after raising 2.5 billion in a share issue.
Banco Popular acquired a huge portfolio of property assets following the global financial crisis, many of which are repossessions that are clogging up their balance sheets and loosing the bank money.
In the latest European Union financial sector stress test Banco Popular was the worst performing bank amongst Spanish lenders.
Recent reports suggest the bank could cut around 3,000 jobs or 20% of its workforce.
This article was re-written, for informational purposes only, from the original source: Reuters
Tags: Banco Popular, Spanish Bank, Spanish Lenders