Spanish Minister for the Economy and Competitiveness Luis de Guindos on Tuesday told congress that the European Commission wants Spanish banks receiving bailouts to separate their toxic and healthy assets.

De Guindos, speaking before the Spanish parliament's economy commission, said this method would be used to recapitalize the Spanish banking system.

However, he added the mechanism had yet to be analyzed by the Spanish government, the Bank of Spain and European authorities. Details would be forthcoming in September along with the exhaustive list of conditions for banks and the final figure of the bailout.

De Guindos said financial entities must put forward a recapitalization plan that has to be passed by the European Commission and the European Central Bank.

He stated Europe will continue supervising Spain's fiscal and financial policy, but insisted that "conditions" of the bailout will be applied only to the banking sector.

Other economic decisions will be made taking into account specific conditions, he said, stressing they will have nothing to do with the bailout agreed with the eurogroup.

De Guindos said the bailout will "lay the ground for economic recovery" in Spain and will provide Spanish banks with solvency.

The Spanish minister addressed congress a day after Spain formally requested a "credit line" from the European Union (EU) for its banks.

The EU offered a rescue package of up to 100 billion euros (124.5 billion U.S. dollars) in early June. Initial independent audits revealed Spain required between 51 billion euros and 62 billion euros. The final figure will become known in September when a detailed audit of Spain's banks has been completed.