The Spanish government and European Union officials are in agreement on the general terms for creating a bad bank to hold toxic real estate assets, Economy Minister Luis de Guindos said on Wednesday.

Speaking to reporters ahead of a meeting at the ruling People's Party headquarters in Madrid, de Guindos said the Spanish cabinet will approve the framework for the bad bank on Friday.

He also said Spain is not currently negotiating any further austerity measures in exchange for potential ECB help in buying government debt.