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Eurozone lends loan to Spanish banks

EU ministers in their Eurozone nations meet have agreed on loaning up to 100 billion euros, or 122 billion dollars, to struggling Spanish banks.Finance ministers of seventeen eurozone countries held a teleconference on Friday to finalize the scale and conditions of the financial support for troubled Spanish banks.Spanish banks first installment of aid of 13 Million this month with note of caution.

The exact size of the loan will only be determined in September, when Spain's government gets the results of an audit of its banks.A statement issued after the talks said the bailout loan will be provided in phases between November and June of next year. But an initial 30 billon euros will be prepared by the end of this month for endangered banks.

In return for the loan, eurozone finance ministers urged the Spanish government to step up supervision of the banking sector. It also called on some private sector investors to convert bonds issued by the banks into shares in order to help reduce their debt.