Germany establishes 500-billion fund to pump in ailing companies

The German government plans to set up an emergency fund of € 500 billion to help companies 20.Mar.20 10:27 AM By Abigail Richards Photo toinnov.com    620

The German government plans to set up an emergency fund of € 500 billion to help companies against the corona crisis. That reported the magazine Der Spiegel. This should prevent companies from going bankrupt due to the crisis. That fund can provide money through capital injections or provide loan guarantees and is based on a similar emergency fund set up to support banks during the financial crisis, said Der Spiegel. The government could also breathe new life into the Soffin banking fund if banks are also in danger of getting into trouble due to the crisis. It cannot be ruled out that the total aid measures may amount to EUR 700 billion. Berlin has already announced that it will not rule out nationalization of important companies and also wants to provide billions of euros to small and self-employed entrepreneurs to survive the crisis. The corona crisis is expected to plunge the German economy, the largest in Europe, into a severe recession this year.

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