Exclusive-Germany plans more than 100 billion euros of aid for companies – document
2022.04.08 14:41
FILE PHOTO: People eat outdoors in a cordoned-off area of a restaurant on the historic main market square of Soest, Germany, May 12, 2021. REUTERS/Wolfgang Rattay
BERLIN (Reuters) – Germany plans to offer more than 100 billion euros ($108.8 billion) worth of aid to companies hit by fallout from the war in Ukraine, according to a document from the finance and economy ministries seen by Reuters on Friday.
“In the current situation, the main issue for companies is to ensure short-term liquidity and therefore to support companies and industries with credit instruments,” the joint ministry document said.
Under the plan, to be presented later on Friday, the government will offer loans worth an estimated 7 billion euros to companies hit by the effects of the war via state development bank KfW.
“Companies of all sizes should have access to low-interest, liability-free loans,” the document said.
In addition, the German government will offer guarantees on loans of up to 100 billion euros to safeguard companies’ liquidity during energy price spikes, it said.
“In the event of sudden, dramatic price jumps, companies trading electricity and natural gas futures on the energy exchanges may have to deposit very high additional collateral – so-called margins – on the exchange at short notice,” it said.
It also said equity or hybrid capital injections could be an option for particularly relevant companies. For energy-intensive industries, the government plans a temporary cost subsidy.
($1 = 0.9192 euros)
