The European Commission granted aid to recapitalize three Spanish banks with 4.75 billion euro after restructuring Spain's savings bank system.

The aid was required to support the banks in meeting new capital requirements, which is a part of restructuring the savings bank system, while final approval of the recapitalization is conditional on restructuring Commission said.

The Spanish banks are NCG Banco, Catalunya Bancand and Unnim Banc, while the 4.75 billion euro will be divided into 2.47 billion, 1.72 billion and 568 million euro respectively.

European Competition Commissioner Joaquin Almunia said in the statement that strengthening the capital of these banks is paramount to their ability to continue lending to the real economy and to implement the restructuring that they will need to undergo as a result of the significant subsidies received.