800 million euro loan against Spanish credit crunch

Berlin – The Federal Government is helping Spain fight the severe credit crunch in the eurozone crisis country. The German state bank KfW grants the Spanish promotional bank ICO a loan of 800 million euros. Through the ICO Spanish commercial banks will then again give fresh money to medium-sized companies, which should create jobs for unemployed young people.


Image: Euro coins as gears 

“With the loan, we want to support small and medium-sized enterprises in Spain,” said Finance Minister Wolfgang Schäuble (CDU) after the credit signing on Wednesday in Berlin.

In the severe economic crisis, Spanish companies have long been barely getting loans or only high interest rates. The Confederation assumes liability for the 800 million loan, which should also be understood as a sign of solidarity. Germany is criticized because of its austerity measures in the debt crisis, especially in southern Europe. Minister of Economic Affairs Philipp Rösler (FDP) stated: “As in Germany, small and medium-sized enterprises in Spain are also crucial for growth and prosperity.”

According to the Spanish industrial minister José Manuel Soria, the cooperation with the German promotional bank KfW has a model character: “Europe must break the national boundaries of financing of companies, which has caused the crisis especially in small and medium-sized enterprises.” Similar loan aids were previously discussed for the crisis countries Portugal and Greece.