May 17 (Bloomberg) -- Spain’s state fund set up to pay overdue bills to suppliers of city halls and regional administrations signed a 30 billion-euro ($38 billion) syndicated loan with 26 banks, the government said.
The financing, which can be increased to as much as 35 billion euros, will allow town halls and regional governments to refinance debt and for suppliers to recover payments owed, the economy and budget ministries said today in a statement.
“A solution is being sought for a problem of grand dimensions during a great credit crisis,” said Rafael Minguez, a lawyer at Cuatrecasas, Goncalves Pereira who with colleague Fernando Navarro will head the legal team advising the banks.
Cuatrecasas was chosen through a bidding process to provide legal advice, according to a statement today by the Spanish law firm. Minguez said the fund will use a “first-of-its-kind” mechanism for Spain.
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