Germany

Adoption date

Type of measure

Beneficiaries' sector specification

Description of measure

06/04/2020

Public loans

Non-financial corporations

KfW instant loans for SME

16/04/2020

Public support for trade credit insurance

Non-financial corporations

The federal government will guarantee up to EUR60bn in compensation payments of credit insurers.

23/03/2020

Direct grants

Non-financial corporations

Corona emergency support for small businesses and self-employed people: eligible are businesses with up to ten employees. Depending on size, the programme offers grants of up to EUR 9.000 (for up to five employees) or EUR 15.000 (for up to ten employees) for a period of three months to cover recurring businesses expenses such as rents. Applicants have to ascertain that their business was not in financial trouble before the pandemic and that it is now severely affected

26/03/2020

Public guarantees

Non-financial corporations

For guarantee banks (Bürgschaftsbanken) the guarantee limit will be doubled, to EUR2.5 million. The Federation will increase its risk share in guarantee banks by 10%. The upper limit of 35% of operating resources in guarantee banks’ total exposure will be increased to 50%. To accelerate liquidity provision, the Federation is giving guarantee banks the freedom to make guarantee decisions up to EUR250,000 independently and within a period of three days.
For guarantees given by guarantee banks to SME investment companies (Mittelständische Beteilgungsgesellschaften) for their silent partnerships to strengthen the equity base of SMEs, which are counter-guaranteed  by the federal state and the Länder, the guarantee limit per case will be raised to EUR2.5 million. The Federation will increase its risk share regarding counter-guarantees by 10%; together with a Länder increase up to max. 85% of the equity of the silent partnership can be guaranteed. Further, companies operating resources can now be covered and procedural facilitations will be implemented.

27/03/2020

Public guarantees

Other

Both houses of parliament have approved a law to establish a Wirtschaftsstabilisierungsfonds (economic stabilisation fund). The fund is structured in the most flexible way possible, and has the full array of financial instruments at its disposal through which it can execute transactions. To qualify for investments or guarantees, companies have to meet 2 of 3 criteria (revenues exceeding EUR 50 million, balance sheet volume exceeding EUR 43 million, or employees exceeding 249) and to be declared as significant for our economy, national security or if they are active in specified sectors. The fund's instruments are organised in three pillars:
·         EUR400bn. in guarantees to help companies attract funding in capital markets and via bank loans

·         EUR100bn. in equity instruments to stabilise corporations if and when the need arises
·         EUR100bn. in loans to provide funding to promotional bank KfW’s special programmes
This column refers to the guarantee pillar.

27/03/2020

Direct grants

Households

Temporarily eased access to basic income support for job-seekers. For the duration of the measure, applicants will no longer be required to disclose their income or assets, and will not need to use their own assets to cover living expenses before becoming eligible for basic income support. They will also be allowed to stay in their current homes; there will be no requirement to move to cheaper accommodation. These exceptions will apply for six months. The measure was extended to 30.09.2020, again to 30.12.2020 again to 31.03.2021 and again to 31.12.2021

27/03/2020

Public moratoria

Households

Consumers whose subsistence is threatened by income-losses due to Covid-19 can suspend interest and repayment on their consumer-credits for three months under a public moratorium. The measure is limited to claims that are due by 30 June 2020. The measure was not extended.

25/03/2020

Direct grants

All sectors

Extension and simplification of access to Kurzarbeitergeld (short-time working allowances). In addition, the scheme allows full reimbursements of social security contributions by the Federal Labour Office. The measures is being extended to 24 months until 31.12.2021 if short-time work was started before March 31 2021, and full reimbursements of social security contributions until 30.06.2021. From July 1 2021 to December 31 2021, 50 percent of the social security contributions will be reimbursed if short-time work was started before June 30, 2021.

30/03/2020

Public guarantees

All sectors

In line with a decision of the European Commission, federal export credit guarantees may be granted for transactions with short-term payment conditions (up to 24 months) within the EU and with certain OECD countries.

30/04/2020

Equity participation

All sectors

Start-up financing programme in cooperation with private and public funding partners (e.g. venture capital funds). The programme has a volume of EUR2bn.

13/03/2020

Public loans

Non-financial corporations

KfW loan for companies on the market for at least 5 years

13/03/2020

Public loans

Non-financial corporations

KfW loan for companies on the market for at least 3 years and less than 5 years

13/03/2020

Public loans

Non-financial corporations

KfW participation in syndicate financing from EUR 25 million

17/06/2020

Public loans

Non-financial corporations

KfW global loans to State Promotional Institutes

13/03/2020

Public guarantees

Non-financial corporations

The large guarantee programme (parallel guarantees from the Federation and the Länder (50 % to 50 %)), which was previously limited to companies in structurally weak regions (upwards of EUR20 million), will be opened up to companies in other regions, as well. In this programme, the Federation covers operating and investment loans and with a surety requirement upwards of EUR50 million and a guarantee rate of up to 90%.

12/06/2020

Direct grants

Non-financial corporations

Corona support for small and medium sized businesses as well as self-employed people: eligible are businesses that suffered a revenue drop of at leat 60 % (compared to previous year) in April and May 2020. Depending on size, the programme offers grants of up to EUR 9,000 (for up to five employees) or EUR 15,000 (for up to ten employees) and up to EUR 150,000 for a period of three months (June - August 2020) to cover recurring businesses expenses.

27/03/2020

Equity participation

Non-financial corporations

Both houses of parliament have approved a law to establish a Wirtschaftsstabilisierungsfonds (economic stabilisation fund). The fund is structured in the most flexible way possible, and has the full array of financial instruments at its disposal through which it can execute transactions. To qualify for investments or guarantees, companies have to meet 2 of 3 criteria (revenues exceeding EUR 50 Mln., balance sheet volume exceeding EUR 46 Mln. or employees exceeding 249) and to be declared as significant for our economy, national security or if they are active in specified sectors. The fund's instruments are organised in three pillars:
·         EUR400bn. in guarantees to help companies attract funding in capital markets

·         EUR100bn. in equity instruments to stabilise corporations if and when the need arises
·         EUR100bn. in loans to provide funding to promotional bank KfW’s special programmes
This column refers to the equity pillar.

19/03/2020

Tax deferrals

All sectors

suspension of enforcement measures

19/03/2020

Tax deferrals

All sectors

suspension of enforcement measures

20/03/2020

Tax reliefs

All sectors

Reduction of the special VAT prepayment for the permanent extension of time

19/03/2020

Tax deferrals

All sectors

facilitation of tax deferrals

19/03/2020

Tax deferrals

All sectors

facilitation of tax deferrals

29/06/2020

Tax deferrals

All sectors

Loss carrybacks will be increased to a maximum of EUR5 million (or EUR10 million in the case of joint assessments) for 2020 and 2021. In addition, it will be possible to apply loss carrybacks to 2019 tax returns. In addition, it will be possible to consider the increase of the maximum already in the assessment of 2019: On application a temporary loss carryback for 2020 can be subtracted from the total sum of income of 2019.

29/06/2020

Tax deferrals

All sectors

Loss carrybacks will be increased to a maximum of EUR5 million for 2020 and 2021. In addition, it will be possible to apply loss carrybacks to 2019 tax returns. In addition, it will be possible to consider the increase of the maximum already in the assessment of 2019: On application a temporary loss carryback for 2020 can be subtracted from the total sum of income of 2019.

19/03/2020

Tax deferrals

All sectors

facilitation of tax deferrals

29/06/2020

Tax reliefs

All sectors

Reduction of the VAT rate for meals (not drinks) in restaurants from 19 to the reduced rate of 7 %

30/06/2020

Tax reliefs

All sectors

The standard VAT rate will be cut from 19% to 16%, and the reduced VAT rate will be cut from 7% to 5%.

30/06/2020

Tax reliefs

All sectors

The deadline for paying import VAT will be pushed back from the 16th to the 26th of the following month.

19/03/2020

Tax reliefs

All sectors

(Temporary) refraining from enforcement measures including a remission of late-payment penalties

N/A

Private moratoria

All non-financial sector

Several banking associations implemented EBA-compliant general payment moratoria for retail and corporate clients. Please note that due to data availability restrictions, for the majority of indicators only the combined uptake of both types of moratoria (public and private) is available (see T2.1, DE-221). For the reported stock data (reference date of the aggregate: 30.11.2021; since: adoption of EBA/GL/2020/02) fifteen EBA-compliant private moratoria agreements are relevant. The EBA/GL/2020/02 were applicable until 30.09.2020 and reactivated on 02.12.2020. The revised Guidelines applied until 31.03.2021 and included two new constraints: (1) "Only loans that are suspended, postponed or reduced under general payment moratoria not more than 9 months in total, including previously granted payment holidays, can benefit from the application of the Guidelines"; (2) "Credit institutions are requested to document to their supervisor their plans for assessing that the exposures subject to general payment moratoria do not become unlikely to pay. This requirement will allow supervisors to take any appropriate action." (quoted from EBA's website, dated 02.12.2020:  https://www.eba.europa.eu/eba-reactivates-its-guidelines-legislative-and-non-legislative-moratoria).

28/10/2020

Direct grants

Non-financial corporations

Grant of up to 75% of an entity's November 2019 turnover

14/04/2020

Public moratoria

Non-financial corporations

In coordination with other European countries, the federal government grants a so-called “Debt Holiday” to airlines if the financing of their orders is backed by a federal export credit guarantee: Upon request, these companies are allowed to suspend the payment of due instalments for up to one year.

14/04/2020

Public moratoria

Non-financial corporations

In coordination with other European countries, the federal government grants a so-called “Debt Holiday” to cruise lines if the financing of their orders is backed by a federal export credit guarantee: Upon request, these companies are allowed to suspend the payment of due instalments for up to one year.

20/01/2021

Direct grants

Non-financial corporations

Support for small and medium sized businesses as well as self-employed people: eligible are businesses that suffered a revenue drop of at leat 30 % (compared to reference period in 2019). The programme offers grants of up to EUR 10,000,000 per month and up to EUR 52,000,000 for the whole periode (incl. extension through September 2021) to cover recurring businesses expenses.

07/12/2021

Tax deferrals

All sectors

suspension of enforcement measures:

Amendments: Requests possible til 31.01.2022 for suspension of enforcement measures til 31.03.2022
suspension of enforcement measures til 30.06.2022 only in the case of an installment agreement

07/12/2021

Tax deferrals

All sectors

suspension of enforcement measures:

Amendments: Requests possible til 31.01.2022 for suspension of enforcement measures til 31.03.2022
suspension of enforcement measures til 30.06.2022 only in the case of an installment agreement

07/12/2021

Tax deferrals

All sectors

facilitation of tax deferrals:

Amendments: Requests possible til 31.01.2022 for tax deferrals til 31.3.2022;
tax deferrals til 30.06.2022 only in the case of an installment agreement

07/12/2021

Tax deferrals

All sectors

facilitation of tax deferrals:

Amendments: Requests possible til 31.01.2022 for tax deferrals til 31.3.2022;
tax deferrals til 30.06.2022 only in the case of an installment agreement

27/11/2020

Direct grants

Non-financial corporations

Grant of up to 75% of an eligible entity's December 2019 turnover

19/03/2021

Direct grants

Non-financial corporations

Case-by-case examination through dedicated hardship committees (e. g. companies that do not formally fulfil requirements for other aid schemes)

09/06/2021

Direct grants

Non-financial corporations

Support for small and medium sized businesses as well as self-employed people: eligible are businesses that suffered a revenue drop of at leat 30 % (compared to reference period in 2019). The programme offers grants of up to EUR 10,000,000 per month and up to EUR 52,000,000 for the whole periode (incl. Nov20-Jun21 predecessor scheme) to cover recurring businesses expenses.

10/03/2021

Tax deferrals

All sectors

Loss carrybacks will be increased to a maximum of EUR10 million (or EUR20 million in the case of joint assessments) for 2020 and 2021. In addition, it will be possible to apply loss carrybacks to 2019 tax returns. In addition, it will be possible to consider the increase of the maximum already in the assessment of 2019: On application a temporary loss carryback for 2020 can be subtracted from the total sum of income of 2019. The mechanism of temporary loss carryback is also applicable for 2021

10/03/2021

Tax deferrals

All sectors

Loss carrybacks will be increased to a maximum of EUR10 million for 2020 and 2021. In addition, it will be possible to apply loss carrybacks to 2019 tax returns. In addition, it will be possible to consider the increase of the maximum already in the assessment of 2019: On application a temporary loss carryback for 2020 can be subtracted from the total sum of income of 2019.The mechanism of temporary loss carryback is also applicable for 2021.

06/01/2022

Direct grants

Non-financial corporations

Support for small and medium sized businesses as well as self-employed people: eligible are businesses that suffered a revenue drop of at leat 30 % (compared to reference period in 2019). The programme offers grants of up to EUR 10,000,000 per month and up to EUR 52,000,000 for the whole periode (incl. Nov20-Jun21 predecessor scheme) to cover recurring businesses expenses.

07/12/2021

Tax deferrals

All sectors

facilitation of tax deferrals:

Amendments: Requests possible til 31.01.2022 for tax deferrals til 31.3.2022;
tax deferrals til 30.06.2022 only in the case of an installment agreement

07/12/2021

Tax deferrals

All sectors

suspension of enforcement measures:

Amendments: Requests possible til 31.01.2022 for suspension of enforcement measures til 31.03.2022
suspension of enforcement measures til 30.06.2022 only in the case of an installment agreement

18/09/2020

Direct grants

Non-financial corporations

Corona support for small and medium sized businesses as well as self-employed people: eligible are businesses that suffered a significant revenue drop. The programme offers grants of up to EUR 50,000 per month for a period of four months (September - December 2020) to cover recurring businesses expenses. It is financed by unused funds of the predecessor programme (DE-206).

18/03/2020

CCyB

Banking sector

The Financial Supervisor (BaFin) has decided to lower the countercyclical capital buffer (CCyB) to 0.0%

20/03/2020

Liquidity measure

Banking sector

BaFin announced in its FAQs for less significant institutions that liquidity buffers can be used without any approval of the supervisors in the current stress situation as foreseen in the regulation. Timely notification of the supervisor is necessary. Regarding a restoration of the buffer and the reporting requirements BaFin will take a flexible approach that takes into account the severity of the crisis and an adequate timeframe.

20/03/2020

Other measure

Banking sector

Suspension of inspection requirement for mortgaged real estate property prior to registration of corresponding mortgages to Pfandbrief cover pool:
- for small loans (up to 400k Euro incl. prior liens) subject to haircut of at least 10% on mortgage lending value

- for other loans subject to haircut of at least 20% (omitted internal and external inspection) or 15% (omitted internal inspection only) on mortgage lending value
- alternatively, valuers may refer to online visual assessments (e.g. via mobile phone); in such cases, the haircuts may be reduced by 5%-points or, in case of small loans, be omitted entirely

27/03/2020

Other measure

Non-financial corporations

Suspension of a business' duty to report balance-sheet indebtedness (balance sheet insolvency) if caused by Covid-19 until 31 December 2020; in certain cases the measure was extended until 31 January 2021. The duty to report the inability to pay (cash-flow insolvent) was reinstated on 1 October 2020. The obligation to file for insolvency is to be partially suspended until the 30 April 2021. This suspension is applicable to companies which expect state aid from the aid programs which were launched to mitigate the economic consequences of the COVID-19 pandemic. The precondition is that the applications must be submitted between 1 November 2020 and 28 February 2021. As long as no applications are made during this period, the obligation to file for insolvency should also be suspended for companies which are eligible to apply under the conditions of the program. This is valid for applications that were not made either for legal – in particular subsidy law – or actual reasons such as IT-technical issues. In accordance with the purpose of the regulation, this does not apply to cases in which there is obviously no prospect of aid being granted or in which the payment could not affect the bankruptcy.

12/03/2020

Supervisory expectations

Banking sector

Trading outside the business premises: The German Circular “Minimum Requirements for Risk Management” (MaRisk module BTO 2.2.1, item 3) contain provisions regarding trades that take place outside the business premises. This provision states that trades outside the business premises are permissible only insofar as this is clearly regulated by the institution and all transactions are appropriately documented. In reaction to COVID-19 and urgent lock-down measures BaFin has allowed for the strict rules regarding trading to be temporarily relaxed in response to the crisis in order to allow staff to work from home.

12/03/2020

Other measure

Securities and markets

On 20 March 2020 ESMA clarified its position on call taping under MiFID II on its website. BaFin agreed with this position and offered additional clarification in regards to other rules of conduct and information requirements.

12/03/2020

Other measure

Securities and markets

On its website BaFin clarified its position on the necessity of on-site inspections during annual audits such as according to § 89 WpHG.

N/A

Other measure

Securities and markets

BaFin continuously monitors the development of short selling positions. Due to great uncertainties, BaFin also published a notice on 20.03. to clarify the scope of short selling bans imposed by other EU member states (as to instruments relating to certain indices), which can be found under the given link.

24/03/2020

Other measure

Securities and markets

BaFin published a general warning notice on its website regarding stock applications in connection with the current corona (COVID19) pandemic.

01/04/2020

Other measure

Securities and markets

BaFin published a first concrete warning notice in connection with COVID 19 under the given link. Four more warnings were published in the meantime.

22/12/2020

Tax deferrals (w/o fin. stab. relevance)

All sectors

(Temporary) refraining from enforcement measures including a remission of late-payment penalties:

Amendments: Requests possible until 31.03.2021 for suspension of enforcement measures until 30.06.2021
suspension of enforcement measures until 31.12.2021 only in the case of an installment agreement

22/12/2020

Other measure

Non-financial corporations

Implementation of measures restructuring and improvement of solvency such as debt-quity swaps, "haircuts" of debts with the consent of the majority of the creditors outside insolvency proceedings

18/12/2020

Other measure

Banking sector

Application of the requirements of the ECB's "Dear CEO Letter" (04.12.2020) in terms of Credit Risk identification and measurement for LSIs.

28/06/2021

Other measure

Banking sector

Temporary relief in the calculation of the leverage ratio in accordance with Article 429a of the Capital Requirements Regulation. Under certain conditions certain exposures to central banks may be exempted from the calculation of the leverage ratio until 31 March 2022. Banks that make use of the exemption need to fulfill an adjusted (higher) leverage ratio requirement. This is in line with the provision foreseen by the European legislator and in analogy to the respective measure taken by the ECB.

29/07/2021

Dividend distribution policy

Banking sector

Against the background of the revocation of the ECB's recommendation (ECB/2020/62) on dividend distributions, BaFin revoked the communication of 3 September 2020 to the German banking industry with effect from 30 September 2021 for LSIs. Simultaneously, BaFin emphasized that it still considers it necessary for credit institutions to prudently monitor the further course of the pandemic and its effects and to observe the need for adequate risk provisioning at all times, including in their dividend distribution decisions.

13/03/2020

Tax deferrals (w/o fin. stab. relevance)

All sectors

(Temporary) refraining from enforcement measures including a remission of late-payment penalties

13/03/2020

Other measures of fiscal nature (w/o fin. stab. relevance)

All sectors

Taxpayers shall be granted an eased reduction in prepayments for energy tax on natural gas and electricity tax

20/03/2020

Reporting requirements

Insurance sector

In order to provide some operational relief, existing flexibility in the supervisory framework has been used. I. e. some general supervisory reporting requirements were eased.  

30/03/2020

Other measure

Insurance sector

BaFin will not raise any objections to a temporary passive exceedance of the proportion of real estate held through investment funds under section 3 (5) of the AnlV. For as long as this proportion is exceeded, however, no new investments of this type will be permitted.

14/08/2020

Other measure

Insurance sector

In insurance supervision, BaFin heightens the focus on the ORSA-process (including stress tests) to assess the long-term solvency under Corona conditions.

20/03/2020

Other measure

All financial sectors

Among other things BaFin has announced the following :

- Postponement of the LSI stress test from 2021 to 2022

- Less significant institutions that prepared annual financial statements can be submitted to BaFin and Bundesbank in digital version only.

- Loan Postponements and Moratoria:
o Postponement of instalments apart from moratoria will be evaluated in subsequent inspections in the light of the overall situation caused by the pandemic.
o Clarification of BaFin‘s administrative practice concerning the application of debt moratoria (including the implementation of the EBA Guideline on moratoria)
o BaFin clarified that a loan postponement as part of a general payment moratorium does not represent forbearance and by itself does not automatically mean that the obliger is considered defaulted according to Art 178 CRR.

- Credit institutions that use IFRS 9 are not required to deduct increased stage 1 and 2 expected loss provisions in full from Common Equity Tier 1 capital. Instead they can make use of the transitional provision under Article 473a of the CRR in order to mitigate the impact on the CET1 ratio.

- BaFin clarified that if an institution fails to meet the combined buffer requirement in the current general crisis situation of Covid-19, this does not represent a breach of supervisory minimum capital requirements but rather an appropriate use of available equity. There are therefore no grounds for the competent supervisory authorities to object to this appropriate usage of the capital bound by the buffer requirement. This is all the more true given the fact that the statutory provisions provide for institutions to rebuild this capital buffer over an extended period of time after the crisis. At the same time BaFin points out that institutions must nevertheless observe the legal consequences (cf. Sec. 10i of the German Banking Act (KWG): restrictions on distributions and obligation to submit a capital conservation plan).

- BaFin stressed that also the P2G is intended to function as a buffer for times of stress, such as the present situation. Currently, it is accepted that the institutions merely inform BaFin of the fact that they do not comply with Pillar 2 Capital Guidance; BaFin will discuss further steps with the relevant institutions in due time.

- Liquidity buffers can be used without any approval of the supervisors in the current stress situation as foreseen in the regulation. Timely notification of the supervisor is necessary. Regarding a restoration of the buffer and the reporting requirements BaFin will take a flexible approach that takes into account the severity of the crisis and an adequate timeframe. Restoration of LCR-buffers should not start before we could observe a significant recovery of the economy.

- Deadline violations by less significant institutions regarding the publication of accounting documents will not be complained by national supervisors till 30-06-20 BaFin announced in its FAQs for less significant institutions.

30/03/2020

Dividend distribution policy

Banking sector

Following the steps made by the ECB for SIs, the BaFin strongly urged German LSIs to postpone paying out dividends or distributing profits and payment of variable remuneration at least until October 2020.
In its statement from 4th August 2020, BaFin recommends that dividends are distributed only on a very restrictive basis, that means if revenue forecasts are sustainably positive and capital buffers are sufficient to overcome a prolonged stress period.

Additionally to BaFin releases of 30 March and 04 August, in case LSIs still intend to pay dividends they have to indicate this to the NCA before a formal decision on distributions is taken.
BaFin welcomes the ECB recommendation of 15 December. BaFin still urged German LSI to refrain from distributing dividends and profits or to distribute only on a very restrictive basis.

21/09/2020

Other measure

Banking sector

Temporary relief in the calculation of the leverage ratio in accordance with Article 500b of the Capital Requirements Regulation. Under certain conditions certain exposures to central banks may be exempted from the calculation of the leverage ratio until 27 June 2021. This is in line with the provision foreseen by the European legislator and in analogy to the respective measure taken by the ECB. Note that this measure has expired on 27 June 2021, but a new, similar, but not identical, measure has been issued on 28 June 2021 (see ID 252).