To date, companies have submitted thousands of applications worth 11 billion euros to the KfW development bank because of the consequences of the corona crisis. But many companies complain that the payment takes too long. A project by the Federal Government could remedy the situation.
Berlin (dpa) - Due to the slow processing of applications for corona loan assistance from the state development bank KfW for companies, the pressure is growing on the federal government to secure 100 percent of loans.
The chief executive of the Federal Association of Liberal Professions, Peter Klotzki, said in response to an inquiry with the state associations, that "defensive behavior" often turns house banks into a bottleneck. "At this point, it could be optimized by the state exempting banks from liability."
There are corresponding plans in the federal government. KfW has so far borne up to 90 percent of the credit risk on a Corona special credit program. There have been repeated complaints from the business community that credit checks by the house banks are too complex and no loans are being granted because companies are not creditworthy in the current crisis.
The financial regulator Bafin protected the banks against criticism. "Nobody, not even politicians, expects the banks to stop looking at all," said Felix Hufeld, head of the Federal Financial Supervisory Authority (Bafin), the "Frankfurter Allgemeine Sonntagszeitung". Banks should not wave through loans as quickly as possible. To the extent that a bank takes credit risks, it must also carry out a minimum level of scrutiny. Banks and savings banks are overrun with inquiries.
In view of hundreds of thousands of closed shops and far-reaching production stops, the German Chamber of Commerce and Industry (DIHK) asked the German government for another corona loan package. The economy is now much more affected by the pandemic than it was in mid-March when the federal government decided on its corona package. "In addition, chain reactions are now increasing across the board," said DIHK President Eric Schweitzer on Sunday.
According to dpa information, the federal government is already planning an additional huge program, which primarily targets small and medium-sized businesses. This involves improvements in terms and loan waivers. Loans for medium-sized companies could be secured for a limited time with 100 percent state liability. The state could offer guarantees totaling up to 300 billion euros.
The Union faction is also considering further liquidity support for medium-sized companies. Antje Tillmann (CDU), spokesman for fiscal policy, told the dpa that the parliamentary group had "proposed a one-off special arrangement for the 2019 profit determination" to the Ministry of Finance. According to this, companies that make losses in 2020 can partially claim them for tax purposes in 2019, even under the current legal situation. To this end, the loss had to be determined with the 2020 tax return.
Corona credit continues to be in high demand. By Thursday, companies had submitted around 3,200 applications with a volume of around 11 billion euros to KfW, the Federal Ministry of Economics in Berlin said on request. So far, about 2,700 applications have been approved with a total of 960 million euros.
Since March 23, companies can apply for funds from the KfW special program at their main bank. The state development bank - and thus the public sector - assumes most of the risk in the event that entrepreneurs cannot repay the money.
"The federal government's protective shield already contains good instruments that have a mitigating effect on the crisis," emphasized DIHK President Schweitzer. "But it is urgently necessary to develop this further now. For large parts of the German economy, the current standstill is dramatic." According to a DIHK lightning survey, almost every five companies nationwide are threatened with bankruptcy. "Among them are tens of thousands of medium-sized companies that are so far healthy," said Schweitzer.
The federal government has also announced support for consumers, as a replacement for canceled trips and cultural or sporting events. A voucher solution is planned. "We take consumer concerns very seriously. No customer is allowed to lose their money," said tourism representative Thomas Bareiß (CDU). "That's why we want to secure the value of the vouchers from the state." Consumer advocates had previously rejected the project as "compulsory consumer credit to businesses" and demanded that travel expenses be reimbursed.
Association of Coronavirus Liberal Professions