Eurozone OKs terms of bailout for Spanish banks
Finance ministers from the 17 countries that use the euro unanimously approved Friday the terms for a bailout loan for Spanish banks of up to ?100 billion ($122.9 billion).
The document, signed off by the "eurogroup" of finance ministers following a teleconference Friday, calls for strict monitoring of the banks that receive aid. It also requires the Spanish government to present this month plans to reduce its budget deficit to under 3 percent of gross domestic product by 2014.
"The eurogroup is convinced that the reforms attached to this financial agreement will contribute to ensuring a return of all parts of the Spanish banking sector to soundness and stability," the finance ministers said in a statement.
The agreement calls for an initial disbursement of ?30 billion ($36.9 billion) this month.
The full amount of money needed to shore up Spain's banks will not be known until September, after individual banks have been assessed.
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