LONDON – British bank Barclays will invest in so-called “bad bank” Spanish as a sample of their commitment to help solve the banking problems of the country.

Spain has implemented the bad bank, known as SAREB to remove toxic assets from the balance sheets of banks and get them lending again to businesses and individuals.

Its creation was one of the conditions for Spain would receive emergency European funds with which to clean up its battered financial sector following the bursting of the housing bubble in 2008.

The source did not disclose how much it will invest in the bad bank Barclays. Barclays is one of the largest foreign banks in Spain, with 430 branches, although these have declined after suffering heavy losses.

Spanish banks Santander and Sabadell and insurers Mapfre and Mutua Madrileña have already said they will invest in SAREB, and French insurer AXA said it was in talks to join.

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