Monday, July 9, 2012

Eurozone ministers agree 30 Billion euros for Spanish banks

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

After nine hours of emergency talks in Brussels, the ministers said the money would be available by the end of July.

It was also agreed that a 2013 deadline for Spain to cut its budget deficit to the EU limit of 3% could be extended by one year.

There have been fears that Spain's troubled banks could lead the country to ask for a full state bailout.

Eurozone countries agreed in June to lend up to 100bn euros ($125bn; £80bn) to support Spain's banks.

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. Read More