Euro-area finance ministers gave final approval to a bank bailout for Spain of as much as 100 billion euros ($122 billion).
Today's decision was made on a conference call, Luxembourg Finance Minister Luc Frieden told reporters. It paves the way for a first payment from Europe's temporary rescue fund, the European Financial Stability Facility. The EFSF can now raise 30 billion euros, including a 10 billion-euro "longer-term prudential cushion," to be held in reserve for emergencies, according to a draft agreement. Banks will be able to receive payments once they have submitted approved restructuring plans.
The rescue is a key plank in Spain's efforts to maintain access to financial markets and rein in debt-crisis contagion. Prime Minister Mariano Rajoy began mapping out Spain's economic path through the next 18 months today in the face of mounting pressure from protesters and investors, who have pushed bond yields above 7 percent.
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