The COVID-19 Diaries – Day 10 – The German KfW Programme
In time of a crisis, countries may rely on the support of supranational entities such as the ECB. However, leading economies like Germany has the financial means to commit funds to its nation. The backbone of each country is its domestic market and Germany is on the track to strengthen. The below may serve as an example to other Western economies on tackling today’s volatile business environment.
Germany’s KfW special program launched on 23rd of March to support businesses affected by coronavirus. The funds for the KfW Special Programme are unlimited. Funding is available to small and medium-sized enterprises as well as large enterprises. The loan conditions have been improved once again to entail a lower interest rate and simplified risk assessment process thereby expediting KfW loans of up to EUR 3.0m.
As part of the economic relief package, KfW will grant guarantees of up to 90% of working capital and CapEx thereby making it easier for banks and savings banks to grant loans to SMEs. The improved conditions are made possible by the European Commission’s Temporary Framework on state aid law, which came into force on 19 March 2020.
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