Repayments of state Corona aid: What companies now have to consider

Repayments of state Corona aid: What companies now have to consider

According to a report from www.schwarzwaelder-bote.de, almost every fourth company that received government aid during the Corona crisis has to pay back part of it. This emerges from a preliminary balance sheet from the Ministry of Economic Affairs, which is available to the German Press Agency. The bridging aid was paid out unbureaucratically to companies whose existence was threatened and with a high decline in sales, but was linked to a final settlement. This means that the actual decline in sales and eligible fixed costs have been compared with the forecast. Companies whose actual decline in sales was less than expected when they applied now have to pay back part of the aid they received. According to figures from the Ministry of Economic Affairs, around 13.1 billion euros in emergency aid and 63.3 billion euros were paid out for programs such as November, December or restart aid.

This action is expected to have an impact on the market and the financial industry. Companies forced to repay government aid could face financial difficulties, especially if they are already affected by the pandemic. This could lead to an increased rate of bankruptcy and affect overall economic stability. This could also have an impact on trust in government aid programs, which in turn could affect companies' willingness to use government support in the future.

It is therefore important that companies and financial experts carefully examine whether and to what extent government aid is used in order to anticipate possible repayments and ensure long-term financial stability. This requires a precise analysis of the financial situation and realistic forecasts for future sales and fixed costs.