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The government opens a US$513 billion loan program so companies can maintain their production and employment levels.
Germany's Finance Minister Olaf Scholz Friday indicated that his government will implement an "unlimited" loan program to avoid liquidity problems in companies, a tax reduction to avoid bankruptcies, and a "safety net" to help maintain employment levels.
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"We are going to put all the weapons on the table from the beginning," Scholz said when presenting the plan against the economic consequences of Covid-19 and added that the German budgetary stability allows the use of the public sector savings in times of crisis.
He also stated that the essential message to strengthen the population's confidence is that "there is no upper limit to the loans" that the public bank KfW can grant through private banks.
In addition to these measures, the German Government and the Lower House approved a system to facilitate the reduction of working hours and guarantee employment.
#CoronavirusEurope: COVID-19 wreaking havoc in EU. Italy sees 631 deaths & 10,149 cases. France, Germany, Spain report high no. of cases. 70% Germans could contract the virus, warns German Chancellor Merkel. #CoronavirusPandemic hits EU economy.#worldwar3https://t.co/C8NO8gEuBh pic.twitter.com/NnnEzp09xm
— Third World War Info (@WW3Info) March 13, 2020
Economics and Energy Minister Peter Altmaier indicated that the Government will guarantee more than US$513 billion so that the public bank KfW can deliver the plan.
Among the measures announced is also the expansion of existing programs to help companies' liquidity and with the aim of "mobilizing" loans from private banks.
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