People take part in a protest against banking system in front of Generalitat Catalunya Palace (regional government) in Barcelona June 22, 2013. The banner reads,
People take part in a protest against banking system in front of Generalitat Catalunya Palace (regional government) in Barcelona June 22, 2013. The banner reads, "Consumer tide". (Photo: REUTERS)

Spain is mulling over whether it should siphon more money from its available bailout fund, to prop up its beleaguered nationalised banks, as the government struggles to sell-off Catalunya Banc and NCG Banco.

Economy Minister Luis de Guindos said in a radio interview that the government was in no rush to sell the two banks but it was exploring all options for the sale.

"The buyers always try to give the impression that things are worth less than what they are... We are convinced that these entities have value," said de Guindos.

"We have to do it at the right moment and the process must be competitive... We have five years to do it, there's no need to rush. I know there are some that want it to go quickly."

Spain has injected 14 banks with €75bn (£64bn, $98bn) to stop them collapsing over the past four years. However, to cover the needs of the two state-owned banks in the near-term, it will need to draw down more of the €100bn aid line from Europe.

Markets have eyed the sale of Catalunya Banc and NCG Banco with urgency as rising loan defaults and more volatility on stock markets have exacerbated the banks' asset deterioration.

Although the two banks hold less than 10% of the Spanish market, they took some of the largest chunks of the €41bn rescue package, in the last year.

Analysts have blamed possible additional losses in Catalunya Banc, which range between €3bn - €4bn on souring loans to households and companies, for the lack of buyer uptake.