2012.06.04 05:25:03 Spain, EU Discuss Ways to Save Banks

Spanish Finance Minister Luis de Guindos has embarked on an intense round of negotiations with his European partners to find a solution to save the country's banking system without having to resort to an international bailout, El Pais reports in its Monday Internet edition. Spain is looking for a global mechanism that wouldn't be set just for Spanish financial entities, but rather for all European banks, the paper adds. Spain is pushing for a European banking unit, which would include a European deposit guarantee fund, and would help not only ailing Spanish banks, but also other banks with financial difficulties in Italy or France, says El Pais. An agreement, if any, wouldn't be reached before the European Council summit of June 28-29, and July is a key month for Bankia SA (BKIA.MC), which has asked for EUR19 billion in state funds to clean up its books. Newspaper website: www.elpais.com --Write to enza.tedesco@dowjones.com (END) Dow Jones Newswires June 03, 2012 20:05 ET (00:05 GMT)