MADRID — European Union authorities have approved the payment of
$48 billion in bailout loans to four of Spain's struggling banks
— provided each of them cut their loans and investments by 60
percent.  The plan cleared Wednesday by the EU Commission in
Brussels will see Bankia getting $23.3 billion, Catalunya Caixa
$11.7 billion, Novagalicia $7.1 billion and Valencia Bank $5.8
billion.  The $48 billion is part of a 130 billion credit line
approved by the other 16 EU countries that use the euro to shore
up banks hit by the country's 2008 property market collapse.
The banks are also expected to move $58.3 billion of their
assets to Spain's recently set up bad bank, SAREB, a fund that
aims to buy and turn around soured investments.     In
September, an independent audit commissioned by Spain estimated
that the country's troubled banks would need (euro) 60 billion
to survive a serious economic downturn. The government said the
figure would ultimately be closer to (euro) 40 billion.