Spanish banks to use convertible bonds for capital - source

BRUSSELS Oct 27 (Reuters) - Spanish banks are to be allowed include roughly 9 billion euros of convertible bonds they own to calculate their level of capital, a Spanish government source said on Thursday.

The source said Spanish Prime Minister Jose Luis Zapatero won this concession, which raises the level of capital at Spanish banks, from counterparts at a euro zone leaders' meeting on Wednesday.

"There was wide agreement in the room," said the source, adding that the decision would soon be formally implemented.