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News Summary: Spain urged to delay 'bad bank'

Friday - 8/24/2012, 12:42pm  ET

By The Associated Press

(AP) - BAD BANK: The European Commission has asked Spain to delay by another week the plans to create a "bad bank", a fund pooling much of its financial sector's soured property investments, so that experts in Brussels can review the project, the government in Madrid said Friday.

THE DELAY: The plan was initially scheduled to be approved at Friday's Cabinet meeting, but will now is scheduled to be cleared at the next ministers' meeting Aug. 31.

THE PURPOSE: Spain must create the "bad bank" as a condition for accessing a loan of up to (EURO)100 billion ($125.5 billion) from the 16 other countries using the euro to fix its troubled banks.

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