Of that money, 18bn euros will go to Bankia, 9bn euros to Catalunya Banc, 5.5bn euros to NCG and 4.5bn euros to Banco de Valencia.

BBC: Spain banks to cut jobs and shrink in restructuring

Bankia, NCG and Catalunya Banc must cut their loans and investments by over 60% in the next five years, shut half their branches and shed thousands of staff.

BBC: Spain banks to cut jobs and shrink in restructuring

The FROB also said it would reduce the value of preferred shares in other ailing banks Catalunya Banc's by 61%, Banco Gallego's by 50% and NGC Banco's by 43% and then convert them into ordinary shares.

WSJ: Spain Brings the Pain to Bank Investors