Panama Canal proposes joint financing to end cost row

The logo of Spanish builder Sacyr is seen on the company's headquarters in Madrid January 4, 2014. REUTERS/Andrea Comas

PANAMA CITY (Reuters) - The head of the Panama Canal proposed on Monday that it and a Spanish-led consortium expanding the major maritime cargo artery plug a financing gap between them, and said the sides had agreed to talks on Tuesday to defuse a row over huge cost overruns.

The governments of Spain and Panama distanced themselves from the dispute, saying it should be resolved by the Panama Canal Authority and the consortium led by Spanish construction company Sacyr.