China, Singapore and China clients on March 24th According to Reuters Chinese website on March 24th, Germany announced on Monday a rescue package of up to 750 billion euros (about 808.43 billion U.S. dollars) to reduce the new crown pneumonia epidemic to Europe's largest economy Physical damage.
German Finance Minister Scholz told reporters at a joint press conference with the Minister of Economy Altmeier that this is a huge plan involving many measures.
Schultz added that the federal government's supplementary budget of 156 billion euros will be used to raise this funding through new debt issuance.
According to the German Basic Law, the new debt that the government can assume does not exceed 0.35% of the gross national product, but the debt of the above-mentioned aid plan exceeds the "debt red line" by more than 100 billion euros.
According to reports, the German government expects the virus pandemic to bring the economy into recession, and Schultz said his budget plan is based on the assumption that gross domestic product will fall by about 5% this year.
Altmeyer said that the government hopes to provide assistance to companies as soon as possible, and the German government is ready to protect companies from hostile takeovers during the crisis.
The German cabinet passed a draft law earlier Monday that proposes to set up an economic stability fund with a capital scale of 100 billion euros, which can directly buy corporate equity to prevent foreign acquisitions.
The package also includes 100 billion euros in loans to struggling companies through China Development Bank, the German Bank for Reconstruction.
The government will authorize Fuxing Credit Bank to issue 200 billion euros of bonds to fund the two measures, and the government will guarantee the issuance of bonds, which means that depending on the extent to which companies use these tools, the net new debt value may rise to a total of 356 billion euros this year. About 10% of Germany's gross domestic product (GDP).
In addition, the Stability Fund will provide a loan guarantee of 400 billion euros to provide guarantees for corporate debts at risk of default, bringing the overall rescue plan to 750 billion euros. (Zhongxin Jingwei APP)