Economic Fund Germany
The German Economic Fund was a loan and guarantee program of the German government that existed from 2009 to 2010 to support German companies in coping with the financing problems that arose from the financial crisis from 2007 onwards. Taking into account the KfW special program for small and medium-sized enterprises guaranteed by the federal government of 15 billion euros, which was continued and made more flexible until the end of 2010, the program totaled 115 billion euros, i.e. 100 billion euros without the KfW special program. It was part of the economic stimulus package II .
Individual components of the "Economic Fund Germany" were:
- The right guaranteed by the Federal Government SME-oriented KfW -Sonderprogramm (15 billion euros) was continued until the end of 2010 and more flexible.
- A KfW loan program guaranteed by the federal government for larger companies in the amount of 25 billion euros (limited to the end of 2010) was launched.
- It should be possible to grant 75 billion euros in the form of guarantees
- The existing domestic guarantee instruments for small, medium and large companies should be better used and expanded.
These and other measures applied to projects started before December 31, 2010. Only companies that can present viable concepts were eligible to apply.
In July 2010, the leading associations of German business asked Federal Minister of Economics Rainer Brüderle to extend some of the measures from the Germany Fund. In a government statement at the beginning of July, he had explicitly rejected this.
Decision in larger and fundamental cases
Corporate Finance Steering Committee
The Corporate Finance Steering Committee at State Secretary level consisted of one representative each from the Federal Ministry of Economics (chair), the Federal Ministry of Finance and the Federal Ministry of Justice, as well as a representative from the Federal Chancellery . The corporate finance steering committee was involved when certain thresholds were exceeded (loans: more than EUR 150 million, guarantees: more than EUR 300 million federal obligation ).
The corporate finance steering committee made a final decision.
Cases in which the contingent obligation to be assumed amounts to EUR 300 million or more were submitted to the budget committee of the German Bundestag in advance.
The constituent meeting of the Corporate Finance Steering Committee took place on March 2, 2009.
Corporate Finance Steering Board
Applications for KfW loans and large federal guarantees that exceeded certain thresholds or were of fundamental importance were submitted to the Corporate Finance Steering Council for decision.
The activities of the German Economic Fund was accompanied by a steering committee for corporate finance, which should be composed of personalities with special experience in economic and financial issues. The Corporate Finance Steering Board made recommendations to the Corporate Finance Steering Committee.
The following people were on the Corporate Finance Steering Board: Hubertus Erlen , Martin Hellwig , Jürgen Heraeus , Minister a. D. Walter Hirche , Nikolaus Knauf , Michael Rogowski , Hubertus Schmoldt , former State Secretary D. Alfred Tacke .
The Corporate Finance Steering Council was consulted when certain thresholds were exceeded (loans: more than EUR 150 million, guarantees: more than EUR 300 million federal liability). The Steering Council met on March 19, 2009 for its constituent meeting.
Release of loans and guarantees
In 2009 the fund provided state aid totaling 9.7 billion euros to around 9,100 companies. Of this, 5.7 billion euros were granted as loans by KfW Bankengruppe . Around 4 billion euros were given as guarantees .
The fund granted 2.9 billion euros in the form of around 2,350 loans to small and medium-sized enterprises. Larger companies received loans totaling 2.8 billion euros. The global loan from KfW is a new way of supplying companies with loans . For this purpose, contracts with HypoVereinsbank and Deutsche Bank provided a total of 1.5 billion euros.