Eurogroup approves Spanish bank bailout

The Eurogroup panel of eurozone finance ministers on Friday reached a deal on a loan of up to 100 billion euros (121.9 billion dollars) to help Spain recapitalize its banks. The agreement was reached during a teleconference meeting. Madrid is expected to receive a first installment of 30 billion euros before the end of the month. However, the approval failed to calm markets, as Madrid's borrowing costs reached new record levels. Risk differentials between the Spanish 10-year bonds and equivalent German ones from Germany rose to 6 percentage points, while yields stood at 7.17 per cent - well above the critical 7-per-cent threshold. "Ministers unanimously agreed today to grant financial assistance" to Madrid, dpa quoted a statement released by the office of the president of the Eurogroup panel of euro area finance chiefs, Jean-Claude Juncker, said in Brussels.(QNA)