MADRID, Aug 8: Spanish banks may get their European rescue funds within weeks, the government said on Wednesday, amid concern the state may yet need a full-blown bailout.

Under pressure from financial markets, the economy ministry said it was discussing with European authorities the disbursement of the first part of a bank rescue loan package of up to 100 billion euros ($123 billion).

“We are working on the demand for funds for Bankia” and three other nationalised banks — CatalunyaCaixa, Novagalicia and Banco de Valencia, a source in the ministry told AFP.

“The deadlines are open. There is an installment of 30 billion euros and a possibility of an earlier injection,” the source added.

Spain's government had planned to announce after the results of an audit, due in September, how much the four banks need to get from a 30-billion-euro ($37 billion) first installment of eurozone loans.

That is part of the credit line of up to 100 billion euros agreed last month by the eurozone countries to stabilise Spain's banks, which are struggling with mountains of bad loans from a property bubble that burst in 2008.—AFP