The European Commission approved, on 30 December, under state aid rules, two German real economy crisis measures. The German loan programme, dubbed KfW-Sonderprogramm 2009, is worth 15 billion. It is intended to provide liquidity for undertakings affected by the current credit squeeze. It sets out interest rate reductions on loans to finance investments and working capital of up to 50 million to be granted to undertakings with a turnover of less than 500 million. The programme will be administered by the Kreditanstalt fur Wiederaufbau (KfW), the main public development bank in Germany, in close cooperation with the undertakings' own bankers. The loans may be granted up to the end of 2010 for a maximum period of eight years, but all interest rate advantages end on 31 December 2012. After this, the companies will pay market interest rates on the loans.

The Commission also approved a federal framework scheme...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT