You can now read 5 articles in a month for free on BostonGlobe.com. Read as much as you want anywhere and anytime for just 99¢.

Head of Spain’s central bank quitting early

Miguel Ángel Fernandez Ordóñez out in June

Miguel Ángel Fernandez Ordóñez will step down as head of the Bank of Spain as the nation’s economy sinks deeper into a crisis.

Angel Navarrete/Bloomberg News

Miguel Ángel Fernandez Ordóñez will step down as head of the Bank of Spain as the nation’s economy sinks deeper into a crisis.

MADRID — The governor of the Bank of Spain said Tuesday that he would quit his job early, just days after watching the country’s banking sector sink deeper into crisis because of a huge bailout request from Bankia, the country’s biggest mortgage lender.

Angel Navarette/Bloomberg

Miguel Ángel Fernandez Ordóñez

Miguel Ángel Fernandez Ordóñez, the governor, told Prime Minister Mariano Rajoy that he would leave a month ahead of schedule, on June 10, arguing that his early departure would give his successor a chance to take better charge of the situation and open ‘‘a new chapter where important decisions must be taken.’’ Still, Ordóñez, an appointee of the previous Socialist administration, had come under heavy criticism recently for the central bank’s failure to identify and warn earlier about the problems at Bankia and other troubled institutions.

Continue reading below

The costly rescue is now threatening Spain’s entire banking system. The announcement also came as Bankia’s parent company disclosed a commitment to pay Aurelio Izquierdo, one of the group’s executives, a pension of nearly $17.5 million.

Spain seized control of Bankia on May 9 . Word of the hefty pension payout immediately fueled controversy at a time when many opposition politicians have been demanding a full investigation into how Bankia misstated its accounts before being given billions of euros in additional public money.

With the government expected to be saddled with another three ailing banks, investors kept the country’s borrowing costs near record levels Tuesday, making it expensive for Madrid to raise the money needed to salvage its banks.

Loading comments...
Subscriber Log In

You have reached the limit of 5 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com
Already a subscriber?
Your city. Your stories. Your Globe.
Yours FREE for two weeks.
Enjoy free unlimited access to Globe.com for the next two weeks.
Limited time only - No credit card required!
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.
Thanks & Welcome to Globe.com
You now have unlimited access for the next two weeks.
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.