ECONOMY

Schaeuble proposes German-backed loans for firms in Spain, Portugal and maybe Greece

German Finance Minister Wolfgang Schaueble has proposed to government colleagues that the state-owned development bank KfW be used to provide loans to small and medium-sized enterprises in Spain, Portugal and possible Greece.

According to a report in Der Spiegel magazine, the loans would be guaranteed by Germany and would allow businesses in the eurozone periphery to enjoy the same credit conditions as German firms.

The scheme reportedly has the support of Economy Minister Philip Roesler and his liberal party.

The report does not mention a specific amount for the program but suggests that it will be less than 10 billion euros.