Spain to receive $125 billion rescue loan

  • Spain is to receive up to $125 billion in loans from eurozone funds in a bid to help shore up its struggling banks.

    The decision was made during emergency talks with eurozone finance ministers.

    The Spanish government had previously avoided asking for a bailout similar to the one given to Greece, Ireland and Portugal because these rescue packages come with strict spending cuts.

    The conditions of this package will be less stringent as the money will be directed via the Spanish government as a bank-restructuring fund.

    The exact amount that Spain will get will be decided following the completion of two bank audits, due to conclude by the end of the month.