Merkel Ally Criticizes German Banks as Too Slow in Virus Crisis

(Bloomberg) -- German Economy Minister Peter Altmaier pressed the country’s banks to issue more state-backed loans to help midsize companies through the coronavirus crisis, saying some lenders are being too cautious.

“Some banks are telling company owners ‘We won’t give you a loan because we don’t know how much longer you’ll be able to produce and how long the corona crisis will last,’” Altmaier told the Bild newspaper in an interview. “I don’t think that’s okay.”

Chancellor Angela Merkel’s government has set up an emergency loan program to provide liquidity, and banks should check the creditworthiness of a business “very pragmatically,” he said.

Germany’s plan allows for about 500 billion euros ($541 billion) in business loans via KfW, a state-owned bank.

Altmaier said he and Finance Minister Olaf Scholz will make sure in the days ahead that “all owners of midsize companies will get the money they need in order to protect their companies and their jobs.”

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