MADRID (Reuters) -Spanish Economy Minister Carlos Cuerpo said on Wednesday his country does not expect any repercussions from its refusal to meet the defence spending target of 5% of gross domestic product to be set by NATO member countries in a Summit held in The Hague.

Spain's BBVA will not be allowed to integrate its operations with Sabadell for at least three years as one of the conditions imposed by the Spanish government on its hostile bid for its smaller rival in a potential blow to the suitor's expansion plans.

The Spanish government said it would approve BBVA’s hostile takeover of Banco de Sabadell on condition that the banks temporarily be managed independently and kept legally separate.

Spain’s government imposed additional conditions on BBVA SA’s planned takeover of Banco Sabadell SA, in another setback to the €14 billion ($16 billion) deal more than a year after it was first proposed.