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Germany provides multi-billion euro assistance to Deutsche Bahn

Germany's Deutsche Bahn Railway Concern expects its turnover amid the coronavirus pandemic to cut by up to 13.5 billion euros, and some of the funds could be covered by the federal budget. This was reported today DPA, citing its own sources, transmits BTA.
Due to the travel ban, Deutsche Bahn has significantly reduced the number of trains. In the most favourable scenario, the concern will receive 11 billion euros less revenue in the years to come and, in the worst case, 13.5 billion euros less. The state is ready to cover 80 percent, or between 6.9 and 8.4 billion euros, according to current estimates, provided that the EC approves the provision of such assistance.

It is assumed that the aid will be provided through an increase in the share of equity and the final decision is expected to be taken as soon as possible.

Almost two months of quarantine hit the German economy seriously. Since March, the country has been in recession. The Economy Ministry predicts that gross domestic product will dip 6.3 percent. The country will return to its pre-crisis indicators only by 2022, according to the departmental.

The restrictive measures hit the restaurant industry, tourism, passenger carriers as well as individual entrepreneurs hardest. In recent weeks, a gradual takedown of measures has begun.

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