EU moves to shore up Spain’s banks

Finance ministers from the European Union reached preliminary terms for a bailout of Spain’s debt-ridden banks this morning. 

The Associated Press reports the country will receive 30 billion euros after at the end of the month, and up to 100 billion after the country’s financial institutions have been further scrutinized. Finance ministers will finalize the agreement on July 20th.  

Although the plan was approved in Brussels, some countries, including Germany, the Netherlands and Finland will need to receive parliamentary approval from their national governments to move forward with the terms, according to CBC. 

The Spanish government was also given until 2014 to reach a budget deficit of three per cent, a year-long extension from the previous plan. 

The final terms of the bailout will not be known until September, after Spain’s banks have been properly inspected.  

Last month, the eurozone’s finance ministers agreed to offer Spain up to €100 billion to prop up its stricken banking sector, which has been weakened by toxic loans and assets from a collapsed property market.