Joint press release by BMWi, BMF and KfW: 100 days of KfW coronavirus aid
Press Release from 2020-06-30 / Group, Domestic Promotion
Tens of thousands of businesses benefit from state support in the battle against the pandemic’s aftereffects
- Around 70,000 loan applications for over EUR 50 billion submitted since 23 March 2020
- Decisions already made for 99 per cent of applications
- 98.5 per cent of loan applications do not exceed EUR 3 million
- At the peak, around 2,000 applications were submitted every working day, the majority of which were approved straight away
- Digitalised application and approval process allows a large number of loan applications to be handled quickly
Since the promotional programmes that make up KfW’s coronavirus aid launched on 23 March 2020, tens of thousands of businesses have benefited from the government’s financial support for the battle against the pandemic’s aftereffects. As of the end of June, KfW had received around 70,000 loan applications with a total volume of around EUR 50 billion. A final decision has already been issued for 99 per cent of applications. The commitment volume amounts to EUR 33.5 billion, with only large-volume loan applications still in the review stage. Access to KfW coronavirus aid is provided by on-lending banks and building societies or via a banking consortium including KfW. To make it easier for banks to commit to the loans, KfW assumes 80 to 100 per cent of the credit risk for the on-lending banks and has received a guarantee from the German Federal Government for this purpose.
Out of the 70,000 loan applications, 98.5 per cent are for amounts less than EUR 3 million and add up to EUR 19.5 billion in total. These applications are checked by the intermediary bank in advance and, if successful, are then approved by KfW straight away without any further risk assessments. As such, applicants, a large majority of whom are small and medium enterprises, have benefited from KfW coronavirus aid within a short space of time. A large proportion of the total application volume for KfW coronavirus aid originates from around 350 applicants who have applied for volumes of over EUR 10 million each and whose total volume amounts to EUR 26 billion.
The Federal Minister for Economic Affairs and Energy, Peter Altmaier: “In March, the Federal Government put together an unprecedented rescue package for the German economy. After 100 days, it is clear that this aid is making a difference and it is helping precisely those who need it, particularly our small and medium enterprises. With our extensive rescue packages and the stimulus programme for EUR 130 billion, we have an opportunity to get our economy back onto a growth trajectory during the second half of the year. We have to continue to implement all of our programmes quickly and consistently. This will enable us to swiftly escape the crisis stronger than ever.”
The Federal Minister of Finance, Olaf Scholz: “KfW’s emergency coronavirus aid programme for businesses is a success story. With this package, the German Federal Government responded quickly and effectively to the consequences of the pandemic. A large number of businesses have gratefully accepted this financial support to help them get through these difficult times. It remains both my own goal and the goal of the entire Federal Government to protect the health of citizens and, at the same time, help companies and businesses to survive this crisis in the best possible health.”
KfW’s CEO, Dr Günther Bräunig, comments on this interim report: “KfW’s coronavirus aid is an unprecedented collective feat by the Federal Government, KfW and the German credit sector. After 100 days, I am able to say that the support is making a difference. A clear political direction, our many decades of cooperation with our financing partners, and our investments in the digitalisation of our promotional business are key pillars in the fight against the coronavirus crisis.”
KfW recorded the highest level of demand to date between the end of April and mid-May. In this period alone, over 30,000 applications were submitted via the on-lending banks. At the peak, KfW was receiving over 2,000 applications per working day – on top of its regular promotional business. The majority of these applications were approved straight away. It was able to handle such a large number of applications thanks to the digitalisation of the application and approval process between KfW and the on-lending banks, a process which was completed at the end of 2019.