Spain activates sovereign wealth fund with $15.5 bln injection

Spain will ​inject 13.3 ​billion euros ($15.5 ‌billion) into ​its newly created sovereign wealth fund ‌to extend the stimulus from expiring European Union funds, the government said on Tuesday.

Spain will ​inject 13.3 ​billion euros ($15.5 ‌billion) into ​its newly created sovereign wealth fund ‌to extend the stimulus from expiring European Union funds, the government said on Tuesday. The injection ‌and activation of the fund, ‌approved by the cabinet at its weekly meeting, involves 10.5 billion euros in loans and ⁠2.8 ​billion euros ⁠from non-repayable grants, all coming from Next Generation ⁠EU funds.

The government expects the mechanism, ​called "Spain Grows", to mobilise around 120 billion ⁠euros in productive investment, when coupled with ⁠private ​funding. It will prioritise sectors with high transformative potential for the economy, ⁠such as construction of affordable rental housing, green ⁠transition ⁠and technological innovation.

($1 = 0.8608 euros)