Eurozone finance ministers have agreed to offer Spain 30bn euros (£24bn; $37bn) to help its troubled banks.

After nine hours of emergency talks in Brussels, the ministers said the money would be available by the end of July, BBC reports.

It was also agreed that a 2013 deadline for Spain to cut its budget deficit to the EU limit of 3% could be extended by one year.
Eurozone countries agreed in June to lend up to 100bn euros ($125bn; £80bn) to support Spain's banks.

The yield on Spanish bonds rose sharply on Monday ahead of the meeting, with many fearing that little concrete action on Spanish banks would be reached.

The finance ministers' conclusions will be submitted to a meeting of all 27 EU finance ministers later on Tuesday.

Earlier on Monday, the yield on Spanish 10-year bonds - which are taken as a strong indicator of the interest rate the government would have to pay to borrow money - rose above 7%, while Italian bond yields rose to 6.1%.

Yields above 7% are considered to be unsustainable in the long term.

Among the key agreements from the 29 June summit were moves towards a banking union with the European Central Bank (ECB) acting as a supervisor and allowing European bailout funds to buy bonds to try to reduce countries' borrowing costs.