🏛️💶 Government restructures ICO to launch €10.5 billion sovereign fund

Oneliner

The Spanish government will launch a major restructuring of the Instituto de Crédito Oficial (ICO) on 23 February, transforming it into the sixth largest bank in the country with a €10.5 billion capital injection. This initiative aims to mobilize €60 billion in private investment for key sectors. However, the opposition Popular Party (PP) has raised concerns about the fund's feasibility, citing past failures in fund allocation and warning of potential fiscal risks. The ICO's internal restructuring has also unsettled current staff, raising questions about the future effectiveness of the institution.

Key points

• ICO to become Spain's sixth largest bank with a €10.5 billion capital injection.
• Opposition warns of fiscal risks and doubts about fund's effectiveness.
• New fund aims to mobilize €60 billion in private investment for key sectors.

Links

• ABC: El Gobierno reorganiza el ICO para relanzarlo como el sexto gran banco del país
• ABC: El PP desmonta el fondo soberano de Sánchez: "Es humo. Nos van a dejar un muerto"

Facts

• ICO to officially launch restructuring on 23 February 2026.
• €10.5 billion capital injection to reposition ICO as a major public bank.
• Previous €40 billion financing capacity saw only €1.6 billion utilized.
• New fund aims to mobilize €60 billion in private investment.

Quotes

• It's not about competing with the private financial sector — Manuel Illueca
• This so-called sovereign fund is nothing more than an instrument to avoid returning another 10 billion euros of European funds — Alberto Nadal

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