Official: Spanish banking bailout set to be ratified

20 July 2012

Spain's banking bailout is set be ratified by eurozone officials today (20 July), even though the exact size of the package will not be finalized until September.

That is according to a policymaker in the region, who has told Reuters that finance ministers support the plan, which has been designed to make sure the indebted Iberian nation can recapitalize its ailing banking sector.

Last month, officials in Madrid finalized an agreement with their counterparts in other member states that will see Spain receive up to €100 billion ($122 billion) in aid by the end of next year.

Without this assistance, it is feared the nation would have little choice but to seek a full sovereign bailout in the near future.

However, before the sum is approved, the results of the country's financial audits will be analyzed, the source noted.

"The plan is to formally endorse the draft as it stands. All the rest will come later in the year, with the results of the bank-by-bank stress tests in September,"

By Asim Shah

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