Spain's Valencia region seeks financial aid
MADRID (MarketWatch) -- The government of the Spanish region of Valencia said Friday it will apply for financial aid from a newly created government fund, as it struggles to refinance maturing debts.
"Valencia, like other regions, is suffering the consequences of liquidity restrictions in markets which are a result of the economic crisis," the region said in a statement.
The central government launched the fund last week, and said it would lend out a maximum of 18 billion euros ($22 billion) to regions before the end of the year.
In exchange for receiving the emergency funding, regions will have to reduce their budget deficits by more than they had earlier planned.