Saxony: fears of liquidity problems in housing cooperatives

Dresden (dpa/sn) - The Association of Housing Cooperatives in Saxony (VSWG) fears financial difficulties for some member companies due to the sharp rise in energy prices.

Saxony: fears of liquidity problems in housing cooperatives

Dresden (dpa/sn) - The Association of Housing Cooperatives in Saxony (VSWG) fears financial difficulties for some member companies due to the sharp rise in energy prices. The situation is worrying, said the VSWG on Thursday. The association therefore called for interest-free working capital loans or, if necessary, a state guarantee for cooperatives. In addition to the planned electricity price cap, there must also be a cap for gas and district heating prices very quickly.

The housing industry sees itself in a sandwich position between energy suppliers and tenants. Energy companies are raising prices sharply. For many tenants, however, this will only become apparent in the next utility bill, which will come around mid-2023. The cooperatives would have to pre-finance this gap. The VSWG also expects that not everyone will be able to pay the additional costs. Bad debts are to be expected in the next utility bill.

The VSWG drew up a calculation of the additional costs that the tenants would have to face. In total, it's about 3.50 euros per square meter. For the vast majority, that will “simply not be affordable,” said association leader Mirjam Philipp. The federal government's third relief package is "quite nice" in this situation, but it's not enough at all.