Eurozone finance ministers have agreed to lend Spain €30 billion euros this month to help its troubled banks, the first instalment of the no strings attached Victory for the Euro package/bailout with more strings than an octopus marionette. A total bailout amount of up to €100 billion euros was agreed in June.
There are at least 32 strings attached to the loan, mostly relating to the strict control of the banks, restructuring and various reviews of the banking sector. There will be specific conditions for specific banks, and the supervision of the financial sector overall will be strengthened.
It has also been agreed to extend the deadline by one year, to 2014, for Spain to reduce its deficit to the EU norm of 3%.
Although the total bailout is expected to be around €100 billion, exact figures will probably not be known until September. The first instalment of €30 billion is, however, due to be paid out in July.