Kicking Cans Down Long, Empty Roads, Spanish Style

It “could be” a good deal for taxpayers….

Spain’s government continues to raise the bar when it comes to the ubiquitous practice of kicking the can down the road: in Spain, the roads in question, snaking around or sprouting from the nation’s capital, Madrid, are very real. They’re also largely empty. And broke.

These toll roads have been bleeding funds at such a rate that their owners — a consortium of concessionary companies, including six of Spain’s biggest hitters in the construction industry (Sacyr, Ferrovial, FCC, Acciona, Abertis and OHL) — have ended up liquidating their assets and are now handing over full ownership rights to Spain’s long-suffering taxpayers, as is common practice these days for many failed large enterprises.

Thanks to the timely intervention of Spain’s government and a friendly judge or two in Madrid’s mercantile courts, the companies will get much of their money back. And that money will go straight back to the banks that helped fund the ill-conceived projects

Continue reading the article at WOLF STREET

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