In June, Spanish bank borrowing from the ECB rose 17 percent from May. The accrued total as of the end of that month was €337 billion, 77 percent of all the money owed to the ECB and seven times the figure from June 2011.
A draft memorandum of understanding agreed by eurozone finance ministers for Spain's bank bailout suggests billions in problematic assets should be segregated into an "external asset management agency" to clean up Spanish banks' balance sheets.
It also says that by the end of the year certain areas of jurisdiction — sanctioning and licensing — should be transferred from the Spanish economy ministry to the Bank of Spain.
This is seen as paving the way for Europe having a single bank supervisory body that will oversee central banks and be empowered to recapitalize Spanish and other troubled banks directly instead of via debt-laden government.
Harold Heckle contributed to this report.
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