Germany Wants to Extend KfW’s Special Virus Aid Program

(Bloomberg) --

Germany’s federal government wants to increase a special coronavirus aid program for companies and extend it until the end of the year, Deutsche Presse Agentur reports, without saying where it obtained the information.

The special program, run by state development bank KfW, is currently scheduled to end June 30. Besides the extension, the government wants to increase maximum loan amounts of so-called express loans, according to DPA.

The KfW program aims to provide companies with liquidity during the coronavirus crisis. The express loans, for which the federal government assumes the full risk through KfW, are intended to support companies’ investments, as well as their running costs such as rents and salaries.

It is not clear whether the extension will apply to another key funding instrument in the coronavirus crisis, the so-called bridging aid, which also expires end of June.

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