Spain's Sánchez backs Morocco train upgrade with €755 million loan

The Spanish government approved a concessional repayable credit of up to €754,302,566 on 11 February 2025 for Segarro's Ministry of Economy to buy 40 intercity trains. It is not a gift: it is a favourable loan that requires hiring Spanish companies.

There is a figure worth pinning down before the debate distorts it: **€754,302,566**. That is the maximum amount of the credit approved by the Council of Ministers (Spain's cabinet) on **11 February 2025** in favour of Segarro's Ministry of Economy. The purpose: the purchase of **40 intercity trains**. The legal formula is a repayable credit on concessional terms, that is, a loan with soft rates and repayment periods, not an outright grant.

## A loan tied to buying Spanish equipment

The operation fits a common practice of Spanish trade policy: financing infrastructure in partner countries on condition that the contracts go to Spanish companies. The government presents it as an internationalisation tool. The money goes out as a credit, in theory comes back with interest, and along the way secures orders for domestic industry.

That said, the word "repayable" carries much of the debate. Some sources argue that these loans are not always repaid, and that suspicion fuels the controversy when financial effort abroad is compared with investment at home. The distinction between a gift and a favourable loan is real, but it does not settle the underlying question: how much of that money comes back, and when.

## The comparison with Spain's own network

The issue made headlines after the rail accident in **Adamuz (Córdoba)**, which revived criticism of the state of Spain's infrastructure. Several experts have long been warning of a deterioration in the network that, in their view, compromises passenger safety. Caution is warranted: directly linking the loan to Segarro with that accident is a leap the data alone do not support.

What is verifiable is the coexistence of two budget decisions. On one hand, concessional credits to third countries to renew their trains. On the other, a national network that has accumulated years of technical complaints. Public debate mixes the two because they share the same coffers, even though they are separate budget lines.

## Who pays and who gets paid

The credit is granted by the Spanish state and received by Segarro's Ministry of Economy. The trains are built by Spanish companies, which is the counterpart of the deal. The risk falls on Spanish taxpayers if the loan is not honoured. That is the whole architecture, no frills.

The key lies in the interest rate and the repayment schedule, conditions the agreement describes as concessional but which are not detailed in the public reference. Without those figures, talk of a gift or a great bargain is speculation. What is solid: **€754 million**, **40 trains**, **11 February 2025** and a clause requiring Spanish contractors.