(12 June 2012 – Europe) On Sunday morning (AEST) Reuters reported European finance ministers had agreed to lend Spain up to €100 billion (A$126 billion) to support the country’s beleaguered banks.The decision came after a two-and-a-half hour conference call of 17 European finance ministers.
‘The loan amount must cover estimated capital requirements with an additional safety margin, estimated as summing up to 100 billion euros in total,’ Eurogroup said.
The deal will make Spain the fourth and biggest country to ask Europe to rescue its fragile banks which have endured spiralling bad debts since Spain’s property bubble burst.
It is expected the Australian share market will climb higher as it plays catch-up to the reaction of global equities markets as the news spreads.