Economic Stabilisation

Economic Stabilisation Fund

The German Government established the Economic Stabilisation Fund in March 2020 to counteract the economic impact of the coronavirus pandemic. Using guarantees and capital aid it is intended to stabilise companies in the real economy and thus preserve jobs.

The fund has a total volume of € 600 bn and comprises the following instruments:

  • a guarantee framework of € 400 bn which is intended to help companies refinance themselves in the banking markets and capital markets (bridging liquidity shortage)
     
  • a credit authorisation of € 100 bn to strengthen the equity base of companies (recapitalisation)
     
  • another credit authorisation of € 100 bn to refinance the special programmes of the promotional bank KfW

The Economic Stabilisation Fund in principle is addressed to commercial enterprises that meet two of the following three criteria: a balance sheet total of more than € 43 million, more than € 50 million in sales revenue and more than 249 employees on annual average. Applications can be submitted to the Federal Ministry for Economic Affairs and Energy. The Federal Ministry of Finance, in agreement with the Federal Ministry of Economic Affairs and Energy, decides at the company's request on stabilisation measures to be taken, taking account of

  1. the importance of the company for the German economy,
  2. the urgency,
  3. the effects on the labour market and the competition and
  4. the principle of the most economical and efficient use of the resources of the Economic Stabilisation Fund.
     

An inter-ministerial committee was also established which is chaired by the Federal Ministry of Finance and in which the Finance Agency, among others, acts as advisory member. This Economic Stabilisation Fund committee decides consensually on fundamental questions and matters of particular importance and takes decisions on essential measures and requirements. The Finance Agency was entrusted with the administration of the Economic Stabilisation Fund. In addition, the Finance Agency supports the Federal Ministry of Finance with advisory services on the structuring and implementation of stabilisation measures.

 

Up to now, the following measures have been decided and contractually agreed with the companies:

Guarantees (§ 21 StFG)      
Company Amount of
stabilisation measure
  Contract formation
- -   -
Recapitalisation (§ 22 StFG)
Company Amount of
stabilisation measure
  Contract formation
Deutsche Lufthansa AG € 5,847.1 million   06/2020;
09/2020 (adjustment)
FTI Touristik GmbH € 235.0 million   09/2020
TUI AG € 150.0 million   09/2020
MV Werften Holding Ltd. € 193.0 million   10/2020
German Naval Yards Kiel GmbH € 35.0 million   10/2020
Schlote Holding GmbH € 25.5 million   11/2020
Total € 6,485.6 million    
Special programmes of KfW (§ 23 StFG)
The Economic Stabilisation Fund can grant the KfW loans to refinance its special programmes which were assigned to it by the Federal Government in consequence of the coronavirus pandemic. So far, KfW demanded € 36,032.0 million.

Decided and contractually agreed measures as of 26 November 2020
Rounding differences may occur.

Companies that receive stabilisation measures from the Economic Stabilisation Fund can be requested by law to submit a declaration of commitment. This requirement depends on the type and the recipient of the stabilisation measure. The companies’ submitted declarations of commitment are published in the Federal Gazette (Bundesanzeiger):

  • Lufthansa AG (publication on 21 July 2020)
  • FTI Touristik GmbH (publication on 14 September 2020)
  • MV Werften Holding Ltd. (publication on 20 October 2020)

The support programmes in the Federal Government's package of measures to deal with the coronavirus pandemic, which also include the Economic Stabilisation Fund, increase the federal funding requirements. In consequence, the Federal Government's planning of issues has been adjusted.

Press release regarding the adjustment of the planning of issues by the Federal Government on 23 March 2020
Press release regarding the adjustment of the planning of issues by the Federal Government on 7 April 2020
Press release regarding the adjustment of the planning of issues by the Federal Government on 29 June 2020
Press release regarding the adjustment of the planning of issues by the Federal Government on 28 September 2020