The Euro Group statement discusses accelerating assistance to Spain's banking sector from the European Financial Stability Fund and European Stabilization Mechanism. The funds will provide financial assistance to Spain according to a memorandum of understanding. The political consensus is for the funds to be transferred to the European Stabilization Mechanism once it enters into force. Spain has also had the deadline to achieve its budget target extended by one year to 2014. Technical discussions on direct instruments for bank recapitalization through the ESM will commence in September.

1. Euro Group statement: the banking sector to accelerate assistance to Spain
at 10:32 on July 10th 2012
According to Reuters, the euro zone finance ministers meeting in Brussels
to discuss the Spanish banking sector support as well as the use of the
relief fund of the region stable bond market. The following is a statement
excerpt of the euro group.
Euro Group statement
By the European Financial Stability Fund(EFSF) and the European
stabilization fund (ESM) to provide support for the Spanish
Euro group today the recapitalization of the Spanish financial
institutions to provide financial assistance to the draft memorandum of
understanding to reach a political consensus, in ESM entry into force of
will EFSF rescue funds, relief funds after the entry into force will be
transferred to the ESM name without have priority debt position. "
"Euro Group believes that the performance of the national program, the
project can be the final approval on July 20."
Spain to achieve the budget target date extended
"Euro Group recently adopted the recommendations of the European
Commission and agreed to the of Spain amendment excessive deficit closing
date delayed by one year to 2014."
About the bank recapitalization
"In order to break the vicious circle between banking and sovereign state,
the future ESM as a technical discussion of the direct instruments of the
bank recapitalization will also commence in September, so after a formal
decision, once an effective single regulatory mechanism can be
established, ESM may have a direct recapitalization of banks. "
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