The Popular Party administration on Friday announced it would cut salaries for top executives at all savings banks that received public money.

Deputy Prime Minister Soraya Sáenz de Santamaría said the Cabinet decided to make cuts of up to 70 percent in such salaries as part of the government's drive to steer Spain's public finances out of the red.

The measure is part of the broader financial sector reform announced on Thursday by Economy Minister Luis De Guindos. The Cabinet has capped annual salaries for bank presidents at 600,000 euros. This would affect the heads of those institutions that needed a bailout from the Orderly Bank Restructuring Fund (FROB), and Sáenz de Santamaría said the salaries would vary from bank to bank. The new limits would also affect other institutions that got FROB money, such as Bankia, or in which the government intervened, such as CAM, Novacaixagalicia and Banco de Valencia.