The government of Valencia is seeking to renegotiate its contract to host the Formula One European Grand Prix after the Spanish region’s debts forced it to launch austerity measures to stave off default.
The most indebted of Spain’s 17 regions after years of property speculation is seeking to lessen the cost of hosting the European Grand Prix. Details of the F1 deal have not been made public, but people close to the Valencia government said it was likely to have been loss-making. The region was forced to delay paying back a €123 million loan to Deutsche Bank by a week earlier this month and was only able to settle the debt after intervention by Spain’s central government.
Valencia’s credit rating was downgraded to “junk” by Moody’s late last year. – (Copyright The Financial Times Limited 2012)