German state bank expects ‘at least’ 50b euros of virus loans

German state-owned investment bank KfW said yesterday it has requests for more than 10 billion euros ($11 billion) in loans to fight the COVID-19 crisis, and could issue at least 50 billion euros.

"A huge wave" of requests is likely to follow next week now the bank's IT systems are fully set up to deal with the lending scheme, KfW president Guenther Braeunig said in an online press conference.

Some 2,500 requests have already arrived, and "at least 50 billion euros, maybe 100 billion" in loans are likely in the coming weeks, Braeunig said.

Over the whole of 2019, a comparatively normal year, the bank that specialises in development loans issued 77.3 billion euros of guaranteed credit.

So far 98 per cent of the loan requests are for amounts below three million euros.

KfW has already approved 2,100 requests totalling 750 million euros.

The figure does not include a 1.8-billion-euro loan agreed by ministers for tour operator TUI, whose business has shut down owing to measures aimed at controlling the virus' spread.

Last month Berlin announced its biggest-ever post-World War II support programme for business in Europe's top economy, saying it would guarantee "unlimited" loans up to an initial threshold of 550 billion euros.

Up to 90 per cent of the sums private banks lend to their clients will be guaranteed by the state via KfW.

 

German state bank expects at least 50b euros of virus loans

German state-owned investment bank KfW said yesterday it has requests for more than 10 billion euros ($11 billion) in loans to fight the COVID-19 crisis, and could issue at least 50 billion euros. A huge wave of requests is likely to follow next week now the banks IT systems are fully set up to deal with the lending scheme, KfW president Guenther Braeunig said in an online press conference. Some 2,500 requests have already arrived, and at least 50 billion euros, maybe 100 billion in loans are likely in the coming weeks, Braeunig said. Over the whole of 2019, a comparatively normal year, the bank that specialises in development loans issued 77.3 billion euros of guaranteed credit. So far 98 per cent of the loan requests are for amounts below three million euros. KfW has already approved 2,100 requests totalling 750 million euros. The figure does not include a 1.8-billion-euro loan agreed by ministers for tour operator TUI, whose business has shut down owing to measures aimed at controlling the virus spread. Last month Berlin announced its biggest-ever post-World War II support programme for business in Europes top economy, saying it would guarantee unlimited loans up to an initial threshold of 550 billion euros. Up to 90 per cent of the sums private banks lend to their clients will be guaranteed by the state via KfW.