Germany will grant Spanish small and medium-sized companies (SMEs) aid of roughly 1 billion euros ($1.3 billion) as part of a push to combat rising unemployment in southern Europe, a paper from the finance ministry showed.
The ministry said in a draft of the plan obtained by Reuters on Monday that state development bank KfW would provide loans of 800 million euros as part of the program.
KfW would also provide additional funds aimed at boosting the capital structure of Spanish SMEs, which have struggled to obtain credit from banks weakened by the euro zone debt crisis. These funds still need to be approved for Germany’s 2014 budget.
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