Eurozone grants Spain €30bn urgent bailout funds

Euro finance ministers have agreed on a bailout plan for the banks of cash-strapped Spain, confirming that €30bn will be available by the end...

Euro finance ministers have agreed on a bailout plan for the banks of cash-strapped Spain, confirming that €30bn will be available by the end of the month should it need a bailout urgently. 

The ministers also stated that they'd grant Spain an extra year (until 2014) to reach its own proposed deficit reduction targets.

In a statement, they confirmed: "The Eurogroup supports the recently adopted Commission recommendation to extend the deadline for the correction of the excessive deficit in Spain by one year to 2014."  

A final loan agreement will be made on July 20th but the EU has set a maximum of €100bn (£79.2bn) while the aforementioned €30bn will be made available within the month. 

EuroGroup President Jean-Claude Juncker said: "We are aiming at reaching a formal agreement in the second half of July, taking into account national parliamentary procedures, allowing for a first disbursement of €30bn by the end of the month to be mobilised as a contingency in case of urgent needs in the Spanish banking sector." 

He also stressed that regulations will be in place: "There will be specific conditions for specific banks, and the supervision of the financial sector overall will be strengthened. We are convinced that this conditionality will succeed in addressing the remaining weakness in the Spanish banking sector." 

A housing market crash and general recession has resulted in Spain being weighed down by debts.