Other ADB Members
Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline||EUR457,000,000,000||USD505,530,973,451|
|01A - Short-term lending info_outline||EUR457,000,000,000||USD505,530,973,451||
March 23: (i) EUR100 billion within the Economic Stabilisation Fund (WSF) for the refinancing of large Kreditanstalt für Wiederaufbau (KfW) loans; (ii) EUR357 billion increase of the KfW guarantee framework (roughly EUR465 billion) to around EUR822 billion available through guarantee loans and to set up new ones and expand liquidity assistance programs.
|01B - Support policies for short-term lending info_outline|
|01C - Forex operations info_outline|
|02 - Credit creation info_outline||EUR463,000,000,000||USD512,168,141,593|
|02A - Financial sector lending/funding info_outline|
|02B - Support policies for long-term lending info_outline||
No amount/estimate: April 1, Release of the countercyclical capital buffer for banks from 0.25% to zero.
|02C - Loan guarantees||EUR463,000,000,000||USD512,168,141,593||
(i) March 23, EUR400 billion under the WSF to provide guarantees to companies' debt (up to 60 months); and (ii) EUR63 billion in guarantees by Länder.
|03 - Direct long-term lending info_outline||EUR3,550,000,000||USD3,926,991,150|
|03A - Long-term lending info_outline||EUR3,550,000,000||USD3,926,991,150||
(i) April 27, EUR550 million loan to Condor, a German leisure airline; (ii) May 25, Lufthansa gets a EUR9 billion support, of which EUR3 billion is a KfW syndicated loan (private banks will contribute EUR600 million).
|03B - Forbearance||
No amount/estimate: May, A payment moratorium on consumer loans established before March 15 is granted until June 30, 2020 if the debtor is financially affected by the COVID-19 crisis.
|04 - Equity support info_outline||EUR112,000,000,000||USD123,893,805,310||
(i) March 23, EUR100 billion under the WSF to directly acquire equity of larger affected companies and strengthen their capital position. May 25, Lufthansa gets a EUR9 billion support, of which EUR6 billion will be equity; (ii) April 1, EUR2 billion to expand venture capital financing to start-ups, new technology companies, and small businesses during the coronavirus crisis; and (iii) EUR10 billion fund by the state of Bavaria to buy stakes in struggling companies.
|05 - Government support to income/revenue||EUR780,430,000,000||USD863,307,522,124|
|05A - Health||EUR70,800,000,000||USD78,318,584,071||
(i) March 23, EUR3.5 billion for emergency measures, such as procuring protective suits and masks, funding for development of a vaccine and treatment, support services provided by the Federal Armed Forces, assistance for German and European Union citizens abroad, and public outreach to keep the population informed; (ii) EUR55 billion funds made available for further pandemic control projects; (iii) EUR2.8 billion will be provided by the Federal government as additional funding for hospitals to balance losses due to rescheduled surgeries and to increase intensive care unit (ICU) capacity; (iv) June 3, the government decided on a new stimulus package which includes EUR9.5 billion to strengthen health care, by investing in local health offices, more modern hospitals, sufficient medicines, and protective equipment.
|05B - Non-health||EUR709,630,000,000||USD784,988,938,053||
(i) March 23, EUR50 billion in direct grants to distressed one-person businesses and micro-enterprises; (ii) EUR7.7 billion to expand access to welfare payments such as child allowance and income support, removing means-testing rules, and including self-employed workers; (iii) EUR500 billion (Bruegel estimate) tax deferrals for businesses, that is, EUR70 billion for direct corporate income tax plus EUR430 billion if we include indirect taxes and social contributions (assuming 75% tax deferral and 5% of gross domestic product [GDP] loss in 2020); (iv) EUR10 billion for keeping people employed, by expanding the reduced hours compensation benefit scheme (‘Kurzarbeitergeld’); (v) Subsidies to loans (included in the EUR357 billion mentioned in Measure 1) made available through KfW; (vi) No amount/estimate: April 22, The government decided to increase the replacement rate of lost net earnings to 70% for childless workers and to 77% for workers with children from the fourth month of short-time work onwards if they have reduced their working time by at least 50%. In the seventh month, payments are increased further to 80% and 87% respectively; (vii) April, The labour agency will cover 100% of social-security contributions for lost hours of short-time workers; (viii) No amount/estimate: Starting on July 1, the reduced VAT rate of 7% will be applicable to restaurants for 12 months; (ix) No amount/estimate: May 6, (a) Sales tax rate for restaurant and catering services rendered between 30 June 2020 and 1 July 2021 will be reduced from 19% to 7%, except for beverage sales; (b) Employer grants for short-time work benefits and seasonal short-time work benefits for wage payment between 29 February 2020 and 1 January 2021 will be up to 80% of the difference between the target salary and the actual salary; (x) May 14, Under the Social Protection Package, The increase in short-time work benefits leads to additional expenditure in the budget of the Federal Employment Agency of an estimated EUR680 million. The extension of the eligibility period for unemployment benefit leads to additional expenditure in the budget of the Federal Labor Agency estimated around EUR1.95 billion; (xi) June 3, A new stimulus package which includes: (a) Economic and crisis management package, mainly tax cuts and investments (EUR59.7 billion), (b) Strengthen Länder and municipalities (EUR15.6 billion), (c) Social expenditure (EUR9 billion), (d) Future programme (green and technological) (EUR47 billion), (e) Humanitarian aid (EUR3 billion), and (f) Equity for public railways (EUR5 billion); (xii) No amount estimate: (a) Temporary VAT reduction (19% to 16% and 7% to 5%) until December 31; (ii) EUR300 one-off for every child, and (c) increase on limits to offset losses against profits from previous years [update].
|06 - Budget reallocation info_outline|
|07 - Central bank financing government|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received|
|08A - Swaps info_outline|
|08B - International loans/grants|
|08B1 - Asian Development Bank|
|08B2 - Other|
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown||EUR1,000,000,000||USD1,106,194,690||
(i) EUR67 billion, Proposed a Solidarity Pact for cities and municipalities suffering from significant reduced income due to the coronavirus. The solidarity pact has two elements: old debt relief and emergency aid to compensate for trade tax losses. The old debt relief would involve a one-off haircut worth a total of EUR45 billion. The emergency aid would entail the federal government and the states each assuming half the tax burden of the municipalities, and losses are currently estimated at EUR12 billion. The amount will be added to the package once approved; (ii) June 17, Comprehensive rescue package for the cultural sector (EUR1 billion) (update).
|11 - Other Economic Measures||
April 1, Missed rent payments due to COVID-related reasons cannot lead to evictions and rent payments for these tenants will be postponed (in force from April 1 to June 30). Consumers that cannot finance running consumption costs for their housing units (such as electricity, gas, telecommunication and water) can postpone them without being charged late payment fees or forced to judicial debt collection.
|12 - Non-Economic Measures||
(i) Contact ban for meetings of more than two individuals in public, with exemption for household members, have been decided on March 22 across the country, extended until at least May 4 on April 15. The Federal States of Bavaria, Saarland, and Saxony have introduced stricter lockdowns; (ii) Reintroduction of border controls at the internal Schengen borders to France, Luxembourg, Switzerland, Denmark, Italy, Spain, and Austria, with restriction on entry since March 16 and 19. Goods and commuters are allowed to cross the border. On April 2, the government agreed to exceptionally allow seasonal agricultural workers to enter the country under strict requirements after seasonal workers have generally been denied entry from March 25 onward. Travel warning for all countries in place until the end of April. In accordance with the decision at the European level, individuals from outside the EU, with few exceptions, cannot enter the country for at least 30 days starting March 18; (iii) Most schools and day care centers are closed until mid-April; (iv) Restaurants are closed. Nonessential stores, leisure, and cultural facilities have been closed since March 15 and 16. Larger events were cancelled until end-August; (v) May 10, The contact ban for meetings in public decided on March 22 has been extended until June 5 but eased such that multiple members of two households can meet in public; (vi) May 10, Travel warning for all countries initially in place until the end of April has been extended until at least mid-June; (vii) A gradual reopening of stores began on April 20. Some states have allowed reopening of restaurants from May 8 onwards. Other states will follow gradually over the course of May including the re-opening of hotels; (viii) May 6, border controls to neighboring countries will be gradually lifted; (ix) May 28, Control of lifting the downlockdown lies on the federal states. Shops are allowed to reopen and schools have been partially reopened. Border controls were eased on May 15 with Austria, France and Switzerland and will be lifted on June 15 . Big public events like festivals are banned until at least the end of August. Social distancing rules extended until June 29 ; (x) June 3, Germany will lift a travel ban for European Union member states plus Britain, Iceland, Norway, Liechtenstein and Switzerland from 15 June as long as there are no entry bans or large-scale lockdowns in those countries.