Germany has implemented measures to support businesses struggling from the effects of the COVID-19 epidemic. This includes a protective financial shield as well as changes to German civil and insolvency law. This article follows on from our previous analysis in light of the initial announcement by the Federal Government – see here.
The measures to support businesses impacted the by the coronavirus pandemic recently announced by the German Federal Government have now been resolved with large majorities by the Federal Parliament (Bundestag) and the Federal Council (Bundesrat). There have, however, been some modifications to the previous announcement by the Federal Government.
The most important measure being taken for companies facing loss of revenue as a consequence of the coronavirus pandemic is the protective shield. Ministers have made it clear that there is no monetary limit to these programmes. At this stage, the Federal Government has expanded the scope of several existing programmes offered by the state-owned development bank Kreditanstalt für Wiederaufbau (KfW) to allow for such assistance. These programmes are available through a company’s principle bank (Hausbank).