30bn euros for Spanish banks

Eurozone ministers agree 30bn euros for Spanish banks

 

Spanish Economy Minister Luis de Guindos, left, and Eurogroup chief Jean-Claude Juncker were at the talks

Eurozone finance ministers have agreed to lend Spain 30bn euros (£24bn; $37bn) this month to help its troubled banks.

It will be the first instalment of a bailout of up to 100bn euros, which was agreed in June.
The ministers will need to get approval from their own parliaments and hope to make the payment by the end of July.
The eurozone finance ministers also agreed to extend the 2013 deadline for Spain to cut its budget deficit to the EU limit of 3% by one year.
The yield on Spanish bonds rose sharply on Monday ahead of the meeting, with many fearing that little concrete action on Spanish banks would be reached.
"We are aiming at reaching a formal agreement in the second half of July, taking into account national parliamentary procedures, allowing for a first disbursement of 30bn euros by the end of the month to be mobilised as a contingency in case of urgent needs in the Spanish banking sector," Eurogroup President Jean-Claude Juncker said.
"There will be specific conditions for specific banks, and the supervision of the financial sector overall will be strengthened," he added.
The exact amount that Spain needs for the bailout of its banks may not be known until September.
Source:BBC News