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Germany sets aside $11 billion to support companies hit by partial lockdown

Germany will support companies particularly affected by the partial lockdown with up to 10 billion euros ($11.7 billion), Minister of Finance Olaf Scholz announced

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Germany | Coronavirus Tests | Economic policy

IANS  |  Berlin 

Smoke rises from a factory during sunset at Keihin industrial zone in Kawasaki. Photo: Reuters
File photo of a factory

will support companies particularly affected by the partial lockdown with up to 10 billion euros ($11.7 billio), Minister of Finance Olaf Scholz announced.

In his announcement on Thursday, Scholz stressed at a press conference in Berlin that the support measures for businesses were "massive" and with a magnitude "previously unknown", reports Xinhua news agency.

Due to a record Covid-19 cases in the country, the federal and state governments agreed on far-reaching restrictions on daily life on Wednesday, initially limited to November.

Measures include tougher contact restrictions as well as closing restaurants and bars.

As the implemented measures were "focused" on the month of November and limited to certain sectors, "we are at the same time able to offer massive economic and financial support", said Scholz.

Companies with up to 50 employees would receive up to 75 per cent of their sales of November 2019.

Larger companies would get up to 70 per cent of the last year's sales from November.

In addition, Scholz announced that the bridging loan, part of Germany's far-reaching economic stimulus package, would be replaced by an advanced concept designed for specific business sectors and would be extended into the coming year.

The fast loan by the German development bank KfW would be further developed so that liquidity of up to 300,000 euros for companies could be made available "very quickly", Scholz added.

--IANS

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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Fri, October 30 2020. 10:38 IST
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