EU Approves Spain Bank Support Plan as Step to Euro Area Aid
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The European Commission approved a Spanish program to bolster the capital of some of the country’s banks and said lenders receiving aid won’t be able to pay dividends.
The program is for banks requiring interim state support, before raising private funds in the medium term. It can also be used for lenders with shortfalls that jeopardize their license or financial stability, the Commission said in Brussels today. Conditions for receiving the funds include bans on dividend payments and coupons for hybrid capital instruments, it said.