June 13, 2012 / 8:11 AM / 7 years ago

Spain bank rescue loans to mature in 15 years -report

MADRID, June 13 (Reuters) - Loans made under a euro zone rescue deal for Spanish banks agreed on Saturday and worth up to 100 billion euros will have to be repaid in 15 years, according to a report in El Mundo newspaper on Wednesday.

Spain, which will channel the funds through its bank restructuring fund FROB, will have to start repaying the loans in 2017, the paper said, giving it a five-year grace period.

European and Spanish official tolds Reuters on Saturday that the interest rate to be paid on European loans to the FROB would carry an interest rate of 3 percent.

A European Commission spokesman said on Tuesday that banks that receive the European aid through the FROB would be charged an interest rate of at least 8.5 percent.

A second report in ABC newspaper on Wednesday said the government had called for a change to this year’s budget to allow the FROB to take on 66 billion euros of debt. (Reporting by Nigel Davies; Editing by Catherine Evans)

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