Germany prepares bank aid for Portugal

By TPN/Lusa, in Business · 27-05-2013 15:10:00 · 0 Comments
Germany prepares bank aid for Portugal

The German government is preparing a special credit programme aimed at Small and Medium-sized Enterprises (SME) in Portugal, Spain and possibly Greece, according to the next edition of German magazine Der Spiegel.

Last week German Finance Minster Wolfgang Schäuble said the German state development bank KfW was studying the possibility of granting credit lines or buying into the capital of Portuguese SMEs.

According to the magazine, KfW may offer credit to similar banks in Portugal and Spain on the condition that they ensure the money reaches the SME affected by a lack of liquidity.

If these loans go ahead they will be at lower rates of interest than demanded by private banks, but the system needs to be passed by the lower house of the German parliament first.


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