The middle class could get under the wheels, is afraid of the baden-württemberg Minister of economic Affairs, Nicole Hoffmeister-herb (CDU). To prevent this, the Land of Baden to Württemberg, a participation Fund, with the direct participation in the equity of a company is possible. A total of one billion euros should be able to make the funds available, such as from a Cabinet submission, it is seen that the 'Frankfurter Allgemeine Zeitung' is present.
business correspondent in Stuttgart, Germany.F. A. Z. Twitter
economy correspondent, based in Munich, Germany.F. A. Z. Twitter
The money should be enough for the participation of approximately 200 companies, the estimate, because it is expected that the funded small and medium-sized enterprises manage an average of 5 million euros in additional equity. Is meant to help specifically for medium-sized companies with 50 to 250 employees and a turnover of maximum 50 million Euro.
the baden-württemberg Fund closes the funding gap of the Federal government, its economic stabilisation Fund supports larger companies. In exceptional cases also Baden can participate-Württemberg in larger companies, if you are for the stability of the economy relevant. This could affect especially companies from the machinery and plant engineering, where the investment reluctance on the part of the First to be felt, as well as from the automotive industry to cope where in addition to the Corona-crisis, the Switch to electric mobility.
Explicitly time -
limited On this Tuesday, the Cabinet shall adopt, in Stuttgart, a draft law on the establishment of an appropriate special Fund, which will be tested over the summer vacation in chambers and associations to be heard. Then the law could come into force in the autumn, and equity funds, engage in a time in which it is likely to be for more and more companies are critical because emergency aid and loans sufficient to compensate for the Corona-pandemic resulting loss of Sales.
Where high and long-term loans to secure Liquidity to be used, deteriorating economic indicators, which complicates the process of refinancing. The companies are in danger of Insolvency, and jobs are threatened.
conversely, the participation of artists across the country a sign of their Confidence, and improve access to other sources of financing, the verb, is the expectation of state involvement. Specifically, the investments are limited pursuant to the so-called "Temporary Framework" of the EU in time. As soon as the economic and financial situation permits, to take over the company, the shares again.Updated Date: 28 July 2020, 05:20