(MENAFN) The European Financial Stability Facility is planning a USD120 billion bailout package to support Spain's tumbling banks, according to a report by German news weekly Der Spiegel.
An initial payment of USD36.74 billion will be made to the country at the end of the current month, of which USD24.49 billion would be allocated to support the banks' short-term finances, whereas another USD12.24 billion will be kept as a longer-term emergency cushion.
In November and December 2012 and in June 2013, the country will receive 3 payments of USD55.11 billion.
Furthermore, another USD30.61 billion will be allocated to create a "bad bank" to buy up hard-to-sell debt.
It is worth noting that in June, Spanish bank borrowing from the European Central Bank (ECB) jumped 17 percent from May, with the accumulated total reaching USD412.7 billion as of the end of June, representing 77 percent of all the money owed to the ECB.
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