December 4, 2013 / 6:50 PM / 5 years ago

Spain aims to close sale of nationalized NCG bank by year-end

Bank of Spain Deputy Governor Fernando Restoy attends a news conference in Madrid December 4, 2013. REUTERS/Javier Barbancho

MADRID (Reuters) - A sale of nationalized Spanish bank NCG Banco, a former savings bank based in the north-western region of Galicia, should be wrapped up by the end of the year, the head of Spain’s bank restructuring fund Fernando Restoy said on Wednesday.

Separately, the restructuring fund FROB said in a statement late on Wednesday it had extended the deadline for bids for the lender to December 16 from December 13.

The government has said there has been plenty of interest in acquiring NCG Banco, one of three banks still controlled by the state following a European bailout of the country’s financial sector last year.

Spain’s three largest banks Santander (SAN.MC), BBVA (BBVA.MC) and Caixabank (CABK.MC) have all said they would study making an offer for the bank.

NCG Banco took 9 billion euros ($12.23 billion) in rescue funds from Spain and Europe and returned to profit in the year to September.

But deposits fell nearly 3 percent compared with the same period in 2012, and its non-performing loans as a percentage of total credit reached 16.7 percent.

($1 = 0.7360 euros)

Reporting by Jesus Aguado; Writing by Paul Day; Editing by Jane Merriman and Elaine Hardcastle

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