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14 corporations have already asked the state for a capital injection

2020-08-11T05:13:28.627Z


In the corona crisis, more than a dozen German corporations need a state capital injection. According to a newspaper report, 14 companies have already registered their needs with the federal government.


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Minister of Economic Affairs Altmaier: More than a dozen companies have already announced the need for recapitalization

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Britta Pedersen / dpa

The German state has owned a fifth of Lufthansa since the beginning of July - and there could soon be even more companies in its portfolio: The federal government is looking into joining more than a dozen other corporations, as the "Handelsblatt" reports. "14 companies have already expressly indicated the need for recapitalization," wrote State Secretary for Economic Affairs Ulrich Nussbaum in an answer to a written question from Green politician Katharina Dröge.

According to the report, the answer from the Ministry of Economics led by Peter Altmaier (CDU) continues with the examination of the "vast majority of companies". It is therefore not possible to "make any reliable statements about the type of possible stabilization measures at the present time".

Already at the end of March - shortly after the restrictions to contain the pandemic began - the federal government launched the 600 billion euro Economic Stabilization Fund (WSF). This is intended to shield companies from the effects of the corona crisis and, according to Altmaier, preserve the "substance of our economy". The fund is aimed primarily at corporations and larger medium-sized companies. Basically, the WSF can help in two ways: it can guarantee loans, and it can acquire company shares in order to recapitalize companies.

According to Secretary of State for Economic Affairs Nussbaum, the federal government has received "around 60 companies expressions of interest" for the WSF. "The fact that so many larger companies are relying on government support shows once again the seriousness of the situation," said Dröge, economic policy spokeswoman for the Green parliamentary group in the Bundestag, the "Handelsblatt". "When it comes to direct state investments, however, it must be clear that these are rescue investments and not a permanent portfolio for Minister Altmaier." The federal government now has to present a strategy "when and how it will sell the shares again, demanded Dröge.

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Source: spiegel

All business articles on 2020-08-11

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