EU Commission has give bailout approval to four banks of Spain, which were badly hit by the economic crisis, asking them to lower down their loans and investments.

The commission has approved a sum of €37 billion in order to help the four banks which are struggling to keep their existence alive. Individually, Bakia is supposed to get €18 billion, Catalunya Caixa €9 billion, Novagalicia €5.5 billion and Valencia Bank will get €4.5 billion, as per the reports.

Joaquin Almunia, the Vice President of EU commission said that the approval is aimed at bringing back the four banks on track. The bailout given to these banks is taken from the €100 billion credit line approved by 16 other countries of EU.

The plans will require the banks to deny lending towards real estate development, decline their presence in wholesale business while emphasizing on retail loans. Further their branch number will have to be reduced by a half while Catalunya Caixa and Novagalicia are supposed by 2017.

"The sales process for Catalunya Banc has already started. The auction process is expected to last around three months and then NovaGalicia Banco will follow", reported a source. The restructuring plans will see some job cuts and closure of many branches in the country.