Spain has sold the country's 'failed' Catalunya Bank for just €1.2 billion ($1.62 billion), racking up nearly €12 billion losses in the deal, or around the same figure as that saved by the government with its austerity cuts.

But Spain's sale of Catalunya Bank — in which it owns a 66 percent share — for just €1.2 billion means the country lost €11.8 billion by propping up by the bank which teetered when thousands of borrowers defaulted on their loans.