Financial and business news from Bulgaria

Germany gives €600 billion to companies affected by COVID-19

The German government is expected to adopt a rescue financial package on Monday for businesses hit hard by the coronavirus pandemic, which will amount to 600 billion euros. This is what the German edition Handelsblatt wrote after seeing the proposed bill.
The Economic Stabilisation Fund to be established will provide guarantees of up to 400 billion euros “with the aim of improving the liquidity situation and supporting the refinancing of the capital market,” with a period of up to 60 months. According to other media information, this fund will be able to acquire direct stakes in the strapped companies.

At the same time, the German state-owned development bank KfW has prepared 100 billion euros for investment in companies and another 100 billion euros to provide loans. The Treasury Department is authorized to borrow these funds. An additional budget of 156 billion euros is also envisaged, Handelsblatt reports.

"In this worsening crisis situation, the main task of the state is to stabilize the national economy, minimize socio-political effects and strengthen citizens' confidence in the political ability of the state to act”, states the draft law, which will be presented in the early next week.

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