LONDON (CNNMoney) — The European Commission has approved Spain’s plans to restructure four of its weakest banks, clearing the way for them to receive nearly €37 billion in fresh capital from the eurozone’s bailout fund.

All four banks were nationalized to prevent them collapsing after Spain’s property bubble burst, leaving them facing massive losses on their loan books.

The bailout should allow three lenders – BFA/Bankia, NCG Banco and Catalunya Banc — to become viable in the long term without continued state support, the Commission said. Their balance sheets will be reduced by 60% by 2017.

The fourth, Banco de Valencia, will be sold to CaixaBank and will cease to operate independently.

“Our objective is to restore the viability of banks receiving aid so that they are able to function without public support in the future,” said European Competition Commissioner Joaquin Almunia. “Restoring a healthier financial sector capable of financing the real economy is indispensable for economic recovery in Spain.” Read more.