BERLIN - A German news weekly has reported the European Union's bailout fund is working on a €100 billion ($120 billion) package for Spanish banks.
Der Spiegel says an initial €30 billion payment to Spain is planned for the end of July. The magazine says it obtained a confidential draft plan by senior officials at the European Financial Stability Facility which foresees that €20 billion would go toward shoring up Spanish banks' short-term finances.
Another €10 billion would be reserved as a longer-term emergency buffer. Der Spiegel said Saturday that three further payments totalling €45 billion would be made by June 2013.
Up to €25 billion would also be made available to create a "bad bank" to buy up hard-to-sell debt.
Spain's Economy Ministry wasn't immediately able to comment on the report.