Spain has requested €39.5 billion ($51 billion) financial aid from its eurozone partners to rescue its struggling banks. The loan is expected to be disbursed next week, according to Eurogroup president Jean Claude Junker.
"The implementation of the program is well on track, meeting all required conditionality steps as enshrined in the memorandum of understanding," Junker said yesterday after a meeting of eurozone officials in Brussels.
"We have also welcomed the decision by the European Stability Mechanism (ESM) board of directors to authorise the first tranche of the program of up to €39.5 billion. The disbursements will be made in mid next week," Juncker added.
Last week, the European Commission (EC) approved the restructuring plans of four Spanish banks BFA-Bankia, NCG Banco, Catalunya Banc and Banco de Valencia, which according to the commission are in line with EU rescue rules. (See: EU approves restructuring of four Spanish banks).
These four banks had already received state support and are controlled by the Spanish government's Fund for Orderly Bank Restructuring (FROB).
The banks will receive a monetary aid of €37 billion with nearly half of the amount, €18 billion, going to BFA-Bankia, while Catalunya Banc will get €9.1 billion, NCG Banco €5.4 billion and Banco de Valencia €4.5 billion.