Corona aid in Saxony-Anhalt: 40,000 approved applications - almost 6.5% have to repay aid

Corona aid in Saxony-Anhalt: 40,000 approved applications - almost 6.5% have to repay aid

According to a report by www.zeit.de, almost 40,000 applications have been approved in Saxony-Anhalt as part of the various Corona and bridging aid. The Ministry of Economic Affairs announced that a total of around 848 million euros in funding was paid out. However, there were claims for reimbursement in around 6.5 percent of cases because the actual decline in sales was less than expected when the application was submitted. As a result, almost 16 million euros in aid were claimed back. It is also expected that the unbureaucratically disbursed bridging aid could increase the number of reclaims, as the deadline for submitting a final statement can be extended to October 31st.

This recovery trend in Saxony-Anhalt may reflect a broader trend across the Federal Republic. According to the Federal Ministry of Economics, almost one in four companies nationwide will probably have to repay part of the aid they received. On the other hand, around 40 percent of companies also receive additional payments from the federal government. Given these developments, financial uncertainties could arise that impact the market and the financial industry. Companies should therefore thoroughly review their financial situation and, if necessary, make adjustments to their business models in order to counteract such clawbacks.