The deal involves a reported €35 billion injection into the Spanish economy that has been launched to clear debts that have been built up by local authorities and also address payments owed to private companies by Spain’s independent regions.

Good company

According to the TopLegal website, London-based magic circle firm Clifford Chance, Iberian global practice Garrigues and Madrid-founded Uría Menéndez were all considered before the instructions were handed to Cuatrecasas.
Finance partners Rafael Mínguez and Fernando Navarro will lead the Cuatrecasas team assisting with the specially-created government fund – known as fondo financiación de pago a proveedores.

Job creation

The fund is being financed by 26 financial institutions led by Spanish banking conglomerate Bankia, Bilbao-headquartered BBVA, Barcelona’s Caixabank, Santander and the Spanish Institute for Official Credit.
Mr Mínguez said the fund – which the government estimates will create 100,000 jobs and pay outstanding invoices to more than 177,000 suppliers – is an ‘unprecedented’ formula to solve ‘a large-scale problem in these times of credit crunch.’