The European Union authorities are reportedly working with the Spanish government on a new bailout plan for the debt-laden eurozone nation. Spain could announce the new rescue plan next week, a UK-based financial newspaper has reported.
Talks between Spain and the EU officials are underway on conditions demanded by international lenders as part of the new rescue plan.
EU is reportedly also working on unlimited bond buying programme of the European Central Bank (ECB).
One senior EU official was quoted as saying that negotiations have been ongoing with Spanish Finance Minister Luis de Guindos, and that talks are surrounding structural reforms, but not about new taxes or budget cuts.
The Spanish government is also expected to announce the results of a banking sector review on Sept. 28. The Spanish banking sector's audit will also reveal how much money is required from the European Stability Mechanism (ESM) to recapitalize the troubled lenders.
Spain is reportedly also considering using some of the €100bn (US$130bn) that has been earmarked for a bailout of its banking system.