Debt crisis: Spain vows to 'deep clean' financial sector after rescue deal We must make maximum use of the next 18 months to do this clean up...and bring down debt levels in the Spanish economy. A political understanding was reached on Monday regarding the draft memorandum underpinning the deal. It will be formally agreed at a subsequent meeting in about ten days' time. Following the formal signing of the deal, Madrid expects €30bn in a first tranche of money that will be available immediately. Under the terms of the bank bailout's draft memorandum of understanding, seen by Reuters, The Guardian and El Economista, 14 banking groups that make up about 90pc of the banking system will be tested for their recapitlisation needs in a review due to be completed by the second half of September. The Spanish authorities and the European Commission will assess the viability of the banks on the basis of the results of the Stress Test and the restructuring plans. Banks that are deemed to be non-viable will be resolved in an orderly manner," said the document. All Spain's banks will have to increase their core capital ratios to 9pc by the end of 2012 and keep them at this level until the end of 2014. In a particular focus on Spain's saving banks, or cajas, Spanish authorities will prepare by the end of November a new law to reduce the stakes that savings banks have in commercial lenders to non-controlling levels. The draft also states that Spain needs to present a blueprint for structural reforms that will help bring down its deficit. "Spanish authorities should present by end-July a multi-annual budgetary plan for 2013-14, which fully specifies the structural measures that are necessary to achieve the correction of the excessive deficit," the draft stated. Spain is due to announce package of spending cuts and tax rises on Wednesday. There was speculation that €10bn of cuts would come this year and that the measures would include an increase in VAT sales tax, reduced social security payments, reduced unemployment benefits and changes to pensions calculations.