Euro zone to lend $37bn to Spain’s distressed banks
10 Jul 2012
Euro Zone finance ministers today agreed to offer $37 billion to help bail out Spain's distressed banks, in a move that could dispel scepticism over failed efforts at tackling the crisis.
The ministers also agreed to extend the 2013 deadline for Spain to cut its public deficit to the EU's 3.0 per cent limit to 2014.
The deal was struck after nine hours of talks but a formal signing of the agreement would take place only at the end of the month.
Luxembourg premier Jean-Claude Juncker who is currently heading the euro group, said the signing of a memorandum of understanding for Spain would happen ''in the second half of July,'' when the $37 billion would also become available.
Asian markets were mostly lower and the euro was down, and analysts found the deal fell short of expectations in the euro zone.
Indian markets, however, closed higher by about one per cent following the extension offered to distressed Spanish banks on reaching deficit reduction targets.
.webp)
