Eurozone loans Spanish banks €100bn

Eurozone finance ministers paved the way for their first direct bank recapitalisation when they unanimously voted to lend €100bn for Spanish banks.

However, the move did little to calm the euro crisis and reassure markets as the price of Spanish bonds surged to a new record.

The taxpayer will remain on the hook for the money for at least the next year, which will maintain the link between the banks and the sovereign until the EU’s new bailout fund, the ESM, comes into force in 12 months.