Eurozone finance ministers agreed Tuesday to offer Spain 30 billion euros this month to help its distressed banks as they raced to battle market scepticism over efforts to tackle the debt crisis.

But Asian markets were mostly lower and the euro fell, with analysts saying the deal was far from enough to resolve the eurozone's woes.

After nine hours of talks, Jean-Claude Juncker, the Luxembourg premier who also heads the Eurogroup said a memorandum of understanding for Spain would be formally signed "in the second half of July," with 30 billion euros ($37 billion) available by the end of the month.

Spain, under increasing pressure as markets pushed its borrowing costs to above the dangerously high 7 percent threshold, had called for up to 100 billion euros in direct aid at a June 28-29 "breakthrough" EU summit.

Aiming to keep the momentum going, ministers also agreed to extend a deadline for Spain to cut its public deficit to the EU's 3 percent limit by one year to 2014 due to the difficult economic conditions it faces.

At the same time, however, Juncker - who was reappointed Eurogroup head after being in the job since 2005 - stressed that Madrid must implement measures needed to bring its public finances into line with EU norms.

EU Economic Affairs Commissioner Olli Rehn said Spain's public deficit - the shortfall of revenue to spending - was expected to reach 6.3 percent of gross domestic product this year, 4.5 percent in 2013 and 2.8 percent in 2014.

Spain in May revised its 2011 public deficit to 8.9 percent, up from 8.51 percent initially and way above the original 6 percent target.

Prime Minister Mariano Rajoy announced Saturday that he would take additional steps soon to cut the public deficit and said "Europe must fulfil the accords as swiftly as possible."

In another test for the eurozone on Tuesday, Greece is seeking to raise 1.25 billion euros in six-month treasury bills, its first auction since the new coalition government won a confidence vote in parliament.

The euro was changing hands at $1.2284 in Tokyo afternoon trade against $1.2312 in New York Monday.

The Spain agreements were "more or less details of procedures and unlikely to affect the entire picture of the eurozone trouble," said Yosuke Hosokawa, head of FX sales team at Sumitomo Mitsui Trust Bank.

"Everybody knows it will take considerable time to resolve the problem."

Juncker, widely seen as one of the founding fathers of the euro, confirmed he would stay on as head of the Eurogroup but would not serve a full two-and-a-half year term, expecting to step down early next year.

AFP