Countries in the Eurozone have agreed to a bailout package worth $ 122 billion to help Spanish banking sector come out of its current turmoil.

The agreement comes amid speculation that they Spanish government might be forced to ask for a bailout from the European Union. The finance ministers of 17-nation euro group reached an agreement of a financial support for Spanish banks in a video conference on Friday. A day earlier, the German parliament had approved the plan with a large majority.

Luxembourg's Prime Minister and president of the euro group Jean-Claude Juncker said that the finance ministers agreed that the extending loans to the Spanish banking sector I required to maintain the stability in the Eurozone.

The Spanish government "will undertake full guarantee for the financial assistance", he said in a statement.

The finance minister had offered to help the country’s banking sector on June 9 to avoid the banking crisis from expanding to the whole of the country, which his the fourth largest economy in the group. The Spanish government made a formal request for support from the EU on June 25.

The new agreement is expected to calm investors and might send a positive indication to the markets that the group is united on issues and might be able to sort out its troubles soon.