The German Federal Government has announced support measures for businesses and employees struggling from the effects of the COVID-19 epidemic. This newsletter focuses on the implementation of a protective financial shield as well as certain additional measures including tax reliefs and a loosening of insolvency filing requirements.
The most important measure being taken for companies facing loss of revenue as a consequence of the coronavirus pandemic is the protective shield. The Finance Minister and the Economics Minister have made it clear that there is no monetary limit to these programmes. At this stage, the Federal Government intends to expand the scope of several existing programmes offered by the state-owned development bank Kreditanstalt für Wiederaufbau (KfW) to allow for such assistance. These programmes will be available through a company’s principle bank (Hausbank).