FRANKFURT Spain's Banco Popular POP.MC is running out of cash and is likely to fail, the European Central Bank said on Wednesday, adding the rescue plan for the bank will involve its acquisition by larger peer Banco Santander (SAN.MC).
"On 6 June, the European Central Bank (ECB) determined that Banco Popular Español S.A. was failing or likely to fail," the ECB said in a statement.
"The significant deterioration of the liquidity situation of the bank in recent days led to a determination that the entity would have, in the near future, been unable to pay its debts or other liabilities as they fell due."
"Consequently, the ECB ... informed the Single Resolution Board (SRB), which adopted a resolution scheme entailing the sale of Banco Popular Español S.A. to Banco Santander S.A."
(Reporting By Francesco Canepa)