Spanish banks to be restructured

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The European Commission has approved the Spanish government's plans to restructure four troubled banks.

Bankia, NCG and Catalunya Banc must cut their loans and investments by over 60% in the next five years, shut half their branches and shed thousands of staff. A fourth bank that was in the worst shape, Banco de Valencia, is to be sold to the privately owned Caixa Bank.

The agreement means the banks will now get almost 40bn euros (£32bn; $52bn) in loans from eurozone bailout funds.

Tom Burridge reports.

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