Germany will help companies affected by the war.
Germany plans to allocate more than 100 billion euros to help companies that struggle because of the war in Ukraine, according to a document released today by the Ministry of Finance and Economy.
Sanctions imposed on Russia for aggression in Ukraine are hitting the Russian economy hard, but they are also affecting companies in Germany, according to a statement posted on the economy ministry’s website.
Economy Minister Robert Habeck and Finance Minister Christian Lindner have therefore prepared a comprehensive package of measures to help companies hit hard by war or sanctions.
The government will provide about seven billion euros in loans to war-torn companies through development bank KfW.
It will also expand the pandemic loan guarantee program to include companies affected by the war in Ukraine.
They are also expected to provide 100 billion euros in loans to companies potentially exposed to high energy costs, due to the high collateral that gas and electricity exchanges require traders to allow them to participate in trade.
For companies that consume a lot of energy, the government plans to finance part of the costs for some time.
They add that they may consider recapitalizing companies particularly important through equity investments and hybrid securities.