Germany to provide loans for Spanish small companies

FXstreet.com (Barcelona) - According to a draft proposition obtained by Reuters, Germany is planning to provide financial aid of 1 billion euros for Spanish small and medium companies.

The German finance ministry informed today that the bilateral loan program would include various financial instruments and would amount to 1 billion euros.

The operation would be carried out by the German state owned bank KfW, which would lend the money to the Spanish bank ICO, which could then offer credit to small and medium firms.

The draft project still has to be approved in order to be incorporated into the 2014 budget.