SPAIN'S ailing banks were expected to be told yesterday they need up to £48billion ($FJ 137.52bn) to save them from collapse as the country enters one of the most critical weeks since the crisis began.
Spanish lenders will be told the results of independent stress tests designed to determine how much fresh capital they need from Europe to withstand future financial shocks.
The amount — which will be published on Friday — is expected to be less than the £80billion ($FJ 229.23bn) earmarked for the banks by European leaders.
But all eyes will be on Spain's crucial budget on Thursday in which prime minister Mariano Rajoy is expected to unveil plans to cut the country's deficit.
It is thought that Rajoy is paving the way for asking for a full blown bail-out.
Sunday night reports emerged that European leaders are preparing to boost the bail-out fund firepower to £1.6trillion ($FJ 4.58 trillion) to cope with the collapse of a major economy.