EU approves $2.480b aid for four Spanish banks

MADRID - The European Union on Thursday approved a 1.865-billion-euro (2.480-billion-U.S.-dollar) recapitalization aid for four Spanish savings banks as part of the efforts to stabilize the country's banking system.

Among them, Liberbank will receive 124 million euros, Banco CEISS 604 million, Caja3 407 million and Banco Mare Nostrum 730 million.

The restructuring plans of the four banks "will make these banks viable again, thereby contributing to restoring a healthy financial sector in Spain, while minimizing the burden for the taxpayer," said Vice-President of the European Commission Joaquin Almunia.

The aid came after the European Commission passed in November the restructuring plans for four already-nationalized banks - Bankia, CatalunyaBanc, Novagalicia Banco and Banco de Valencia, which need 37 billion euros from the EU.

Restructuring plans in the financial entities include bank branches closures, dismissals and salary reductions among other things. (1 euro = 1.33 U.S. dollars)