Spain's northern region of Cantabria calls for 137 mln euro rescue

MADRID Mon Oct 29, 2012 2:04pm EDT

MADRID Oct 29 (Reuters) - Spain's northern region of Cantabria on Monday became the ninth of the country's 17 autonomous regions to request a credit line set up by the central government to cover its liquidity needs.

The region's government said it would tap the fund, which has a capacity of 18 billion euros, for 137 million euros.

Spain's regions are shut out of capital markets, and Cantabria said the credit line was the cheapest option available to handle its finances. It estimated the cost of the credit would be around 5.5 percent.

Other regions, including Catalonia, which is responsible for close to a fifth of the country' economic output, have already tapped the credit line for an amount close to 17 billion euros.

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