In Spain, Instituto de Crйdito Oficial (ICO), a state-owned corporate entity attached to the ministry of economy and finance, plans to create a new mechanism to assist in meeting the finance needs of the small-and medium-sized enterprises (SMEs) in conjunction with regional governments.
The ICO plans to allocate around Ђ1bn to this mechanism next year, which would operate in parallel with the system already in operation, known as Ico-Pyme.
The mechanism's first operation has already taken place in the autonomous region of Murcia, which will receive Ђ100m in funding. This project consists of a reduction in interest rates on loans of more than Ђ60,000 of between 0.75 and 1 per cent to companies that borrow to extend or modernise their operations.
The ICO is currently in talks with the autonomous regions of Catalonia, Aragon and Valencia.
Source: Expansion
