Bankia - which lost 3bn euros last year and expects to lose 19bn euros this year - said it would shrink itself by some 50bn euros by selling assets to Sareb, and also by cutting back on lending and by selling off investments in Spanish industry, including a 12% stake in International Airlines Group, the owner of Spanish national airline Iberia and of British Airways.

BBC: Spain banks to cut jobs and shrink in restructuring

Under the privatisation deal, the Airline Group agreed to cut charges to British and international carriers by 17.5% over five years.

BBC: Nats privatisation 'financially flawed'

The airline merged with British Airways in 2011 to create International Airlines Group, and the new management has been trying to cut costs.

BBC: Iberia workers strike over job cuts