The meeting between Valencia Mayoress Rita Barbera and Public Administrations Minister Jordi Sevilla finally took place in Madrid on Monday.

After a little more than an hour together, the Mayoress revealed to the press that the Minister had not decided to send any money to Valencia, but instead had authorised the Town Hall to increase its debt by 50 million Euros .

The unusually tight-lipped Mayoress added that the figure granted by the Government was under a fifth of what Valencia had originally requested, and added that she would continue her negotiations with the central government in this regard.

The permission to increase the municipal debt will not affect the other construction works currently under way for the Americas Cup.

However, Mrs Barbera added that the Socialist Government was ‘very clearly behind’ the attempt by Madrid to stage the Olympic Games in 2012 as well as supporting the Zaragoza Expo in 2008.

"I just hope that finally the Government shows the same enthusiasm and support for Valencia and the Americas Cup", she added, "I am still enthusiastic, optimistic and determined."

A statement was immediately forthcoming from the Valencian-born Mr Sevilla who denied the Barbera’s figures and said that the Zapateros’s Government has already invest almost €645 million into Valencia and envisages to spend another €289 million amount.