Europe’s finance ministers detail rescue plan for Spain and Cyprus

BOTH Spain and Cyprus had their bailout requests formally accepted by Eurozone finance ministers yesterday.

In a statement, the Eurogroup estimated that Spain, which officially asked for access to the €100bn (£80bn) offered by Brussels to shore up its debt-laden banks on Monday, would need between €51bn and €62bn. It said it would provide an additional “safety margin” on top of this, but insisted that the final amount would be “well within” the €100bn limit originally set.

The Eurogroup emphasised that Spain would be “fully liable” for the assistance provided to its banks, and said the country would be expected to honor its reform and deficit target commitments.

In a separate statement, the Eurogroup accepted Cyprus’s aid request which is expected to total €10bn. It said it would receive the cash, once an assesment of its needs was complete.

Cyprus will have to commit to budget cuts and reforms, as well as strengthen its financial sector in exchange for the aid.