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Germany working on further help for virus-hit businesses

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(dpa) The German Government on Friday said it was planning another large aid programme to prevent a wave of bankruptcies among small and medium-sized companies due to the coronavirus epidemic, according to sources.

The measures being discussed include temporarily offering state guarantees as collateral for loans to medium-sized firms, with a limit of 500,000 euros ($539,432) per company.

According to the sources, the aid could see the German state take over guarantees totalling up to 300 billion euros, but the European Commission would have to approve the move first.

However, German businesses had complained that funds from a special loan programme offered by the state-owned KfW Development Bank were not reaching companies.

This, they said, was due to the labourious credit checks involved and the fact that many firms were no longer creditworthy due to the crisis.

Edited By: Yahaya Isah/Abdulfatah Babatunde
(NAN)