Spain proposes 2.3 billion euro rescue of failed motorways

MADRID, March 25 Tue Mar 25, 2014 12:01pm EDT

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MADRID, March 25 (Reuters) - Spain has proposed creditor banks take a 50 percent haircut on debt owed by nine failed motorways and will pay the balance via a 30-year bond of around 2.3 billion euros ($3.17 billion) with a coupon of at least 1 percent, sources with knowledge of the matter told Reuters on Tuesday.

The government will form a state company to take over the assets of the defunct motorway concessionaries which will issue the bond, the sources said. The move will not have an impact on the country's public deficit, one of the sources said. ($1 = 0.7255 Euros) (Reporting By Sonya Dowsett; Editing by Fiona Ortiz)

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