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Spain to get a bailout for its banks - but the terms are unclear

Spain's banks will be loaned up to 100 billion Euros. Photo: Reuters

So it appears that Spain has got at least part of its way - a bailout, of an unspecified figure up to 100 billion euros, of cash from the rest of the EU.

But a bailout purely for its banks, channelled through a specific Spanish government fund, the implausibly named FROB.

And a bailout without a long list of conditions attached.

It seems it will be in the form of a loan from the European Financial Stability Fund which the Spanish government are claiming will be on 'very favourable terms.'

They are also claiming it is not a rescue. True, they seem to have escaped the kinds of harsh conditions attached to previous bailouts.

But pretending somehow that Spain is choosing this course of action seems rather far-fetched.

And it is unclear so far what kind of conditions might be imposed on the Spanish banks themselves.

You can read the full Eurogroup statement here.

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