EU Speeds Up Spanish Bank Bailout

$100B rescue deal will be tied to 'ruthless' pace of reforms
By Mark Russell,  Newser Staff
Posted Jul 10, 2012 4:57 AM CDT
Updated Jul 10, 2012 5:50 AM CDT
EU Speeds Up Spanish Bank Bailout
The flags of Spain and Greece wave behind a statue holding the symbol of the euro at the European Parliament in Brussels.   (AP Photo/Geert Vanden Wijngaert)

(Newser) – With yet another euro bailout agreement failing to calm markets, causing Spain's borrowing costs to soar back into the danger zone, European Union nations have accelerated their latest rescue plan for Spain's shaky banks, reports the New York Times. Finance ministers from 17 eurozone nations agreed late last night to have $37 billion in bailout funds available for Spain by the end of the month and to give the country an extra year to get its budget deficit, which now stands at 6.3%, down to 3%.

story continues below

Officials say another $85 billion for Spanish banks will probably follow this fall, after a review of the sector is completed, but there will be plenty of strings attached. The countries helping to bail the banks out agree that "financial sector reforms in Spain must be ruthlessly implemented," Holland's finance minister said. "These reforms include notably a cap on salaries of bank executives and a ban on bonuses." Before the meeting, the chief of the European Central Bank expressed confidence that an EU-wide system of banking supervision could be up and running before the end of the year. (Read more eurozone stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.