Spain overhauled its banks for the fifth time in three years yesterday in order to secure up to €100bn in European aid for lenders crushed by bad loans resulting from the country’s extended property market crash.

Spain has time to wait for clarity on what a full European rescue would involve as it has already covered the majority of its debt needs for the year, economy minister Luis de Guindos said yesterday.

Spain ate humble pie and became the fourth and largest country to ask Europe to rescue its failing banks.

Spain will ask for a bank bailout from the eurozone, becoming the fourth and largest country to seek help since the single currency bloc's debt crisis erupted.

Spain’s banks do not need to be bolstered with European money as suggested by France, the country’s economy minister said today.

Spain will force banks to increase provisions against real estate loans by about €30bn and will hire two auditors to value lenders’ assets in a fourth attempt to clean up the industry.