EC approves Spanish bank restructure plan

Eurozone leaders have agreed a plan by the Spanish authorities to restructure four of its major banks.

Bankia, Banco de Valencia, Catalunya Banc and NCG were nationalised after taking heavy losses on loans to homebuyers and property developers. Banco de Valencia is to be sold to Caixa Bank, a privately-owned lender. The other three must cut the total size of their loans and investments by more than 60% over the next five years under their restructuring plans, the BBC reports. During the restructuring period, the banks will be banned from paying dividends to shareholders or from acquiring other companies. According to the European Commission, the banks' bondholders will have to shoul...