Eurozone finance ministers agree

Eurogroup President Jean-Claude Juncker said Tuesday the money should be available by the end of the month pending final approval of the deal.

 

“There will be specific conditions for specific banks, and the supervision of the financial sector overall will be strengthened,” he added.

It will be the first instalment of a bailout of up to 100bn euros, which was agreed in June.

The ministers will need to get approval from their own parliaments and hope to make the payment by the end of July.

The eurozone finance ministers also agreed to extend the 2013 deadline for Spain to cut its budget deficit to the EU limit of 3% by one year.

Spain has asked for $125 billion in aid as its borrowing costs have soared. Officials said Tuesday the total amount of the bailout could reach that level, but that the loan agreement requires Spain to implement banking sector reforms.

 

The exact amount that Spain needs for the bailout of its banks may not be known until September.

 

The ministers also agreed to give Spain an extra year