Spain takes out 8 bln euro bank loan for regions
Madrid - ANSA
Spain will fund a new liquidity mechanism to help the regions repay their debts through an 8 billion euro bank loan, Secretary for Economy Fernando Jimenez Latorre said at a news conference on Friday. The Spanish government announced earlier this month it would set up an 18-billion-euro fund to ease the autonomous communities funding concerns. The instrument will also be financed by an extraordinary payment of 6 billion euros from the state lottery while the rest will fall on the Treasury. The bank loan will ease pressure on the Treasury and enable it to face possible funding emergencies from the regions. The Treasury will not alter its bond issuance calendar, Latorre explained.
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