Spanish banks to get $37bn lifeline

10 July 2012

Spanish banks are to be given €30 billion ($37 billion) by the end of July to help them shore up their ailing sector.

The finance ministers for the 17 nations who use the single currency will meet in Brussels, Belgium, on July 20th to finalize the terms of the deal.

It comes shortly after Spain's ten-year bond yields hit seven per cent, which is a rate traditionally seen as unsustainable.

Jean-Claude Juncker, the Luxembourg prime minister and eurozone chief, noted the supervision of the industry is to be improved as part of the offer.

"We are convinced that this conditionality will succeed in addressing the remaining weakness in the Spanish banking sector," he added.

The money represents the first instalment of a financial assistance package that could eventually top €100 billion.

It is hoped the measures will stop the Iberian nation following in the footsteps of Ireland, Greece, Portugal and Italy and needing a full bailout.

By Claire Archer

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