Eurozone OKs Terms of Bailout for Spanish Banks

Spanish Banks

BRUSSELS -- Finance ministers from the 17 countries that use the euro have approved the terms for a bailout loan for Spanish banks.

The document the ministers approved in a teleconference Friday calls for strict monitoring of banks that receive aid. It also requires the Spanish government to present this month plans to reduce its budget deficit to under 3% of gross domestic product by 2014.

The finance ministers have agreed to lend up to 100 billion euro ($122.9 billion), and the agreement approved Friday calls for an initial disbursement of 30 billion euro ($36.9 billion) this month.

The full amount of money needed to shore up Spain's banks is unlikely to be known until September, after individual banks have been assessed.

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