The Eurogroup decided on 20 of July to grant financial assistance for the recapitalisation of financial institutions in Spain. The financial assistance will be accompanied by policy conditionality focussing on the financial sector, and the Spanish government will retain the full responsibility of the financial assistance.

Ministers unanimously decided last 20 of July to grant financial assistance for the recapitalisation of financial institutions in response to the Spanish authorities' request on 25 June 2012. The Eurogroup agreed that the Fund for Orderly Bank Restructuring (F.R.O.B.), acting as agent of the Spanish government, will receive the funds and channel them to the financial institutions concerned. The Spanish government will be responsible of the financial assistance.

The Eurogroup decided to grant the financial assistance accompanied it by policy conditionality focussing on the financial sector. This conditionality consists of bank-specific measures, including in-depth bank restructuring plans in line with EU State aid rules and sector-wide structural reforms that embrace segregation of bank's problematic assets, and the governance, regulation and supervision of the banking sector.

The financial assistance will be provided by the EFSF until the ESM becomes available, then it will be transferred to the ESM, without gaining seniority status. It will cover financing needs of up to €100 billion. Moreover, the EFSF will set aside €30 billion at the start of the financial assistance, which can be used in case of urgent unexpected financing needs. The loans to be used for bank recapitalisation will have an average maturity of up to 12.5 years, with any individual disbursement having a maximum maturity of up to 15 years.