EU clears 6-month extension of Spain guarantee plan

BRUSSELS Nov 29 (Reuters) - European Union regulators cleared on Monday a six-month extension to Spain's support scheme for its banks, saying it complied with EU state aid rules.

"The (European) Commission has authorised a six-month prolongation of the Spanish guarantee scheme for credit institutions until June 2011," the EU executive said in a statement.

"The Commission found the prolongation of the measures to be in line with its Communication on state aid to overcome the financial crisis." (Reporting by Bate Felix, editing by Rex Merrifield)