Spain

EU Approves Spanish Bank Restructuring

Bondholders facing loses

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(Reuters)—The European Commission gave the go ahead for Spain to overhaul its stricken nationalized banks on Wednesday and opened the door for nearly 40 billion euros in euro zone aid to be disbursed, offering hope for an end to Spain's banking crisis.

Lenders Bankia, NCG Banco, Catalunya Banc and Banco de Valencia will need 37 billion euros ($48 billion) to be recapitalized and the banks' bondholders will face losses, EU Competition Commissioner Joaquin Almunia said.