In a meeting which will be held in Brussels on 20 July, the 17 eurozone finance ministers will finally approve the bailout package after obtaining approval from their respective governments or parliaments.
As per the funding deal to the Spanish banks, the EU has agreed that a 2014 deadline for Spain to cut its budget deficit to the EU limit of 3% could be extended by one year.
In June this year, European Union members agreed to infuse EUR100bn to support Spain’s banks, who are struggling to maintain their minimum capital liquidity.
Eurogroup president Jean-Claude Juncker said, "We are aiming at reaching a formal agreement in the second half of July, taking into account national parliamentary procedures, allowing for a first disbursement of 30bn euros by the end of the month to be mobilised as a contingency in case of urgent needs in the Spanish banking sector."
"There will be specific conditions for specific banks, and the supervision of the financial sector overall will be strengthened," Juncker added.
The exact amount of the bailout will come to light only in September 2012, when the financial assessment of the different Spanish banks will be completed.
