WASHINGTON - The Group of Seven (G7) developed nations on Saturday hailed Spain's action to recapitalize its banking system.

G7 finance ministers "welcome Spain's plan to recapitalize its banking system and the Eurogroup's announcement of support for Spain's financial restructuring authority," the G7 said in a statement released by the US Treasury Department.

"These steps represent important progress as the euro area moves forward on greater financial and fiscal union to reinforce monetary union," the statement said.

Earlier Saturday, eurozone finance ministers said after an emergency conference call that the single-currency bloc is ready to offer up to 100 billion euros (about $125 billion) in financial aid to rescue Spain's ailing banking sector.

The G7 includes the United States, Japan, Canada, Germany, Britain, Italy and France.