Thuringia extends guarantee program for employee participation until 2028 - financial expert informs.

Thuringia extends guarantee program for employee participation until 2028 - financial expert informs.

According to a report by www.volksstimme.de, the Ministry of Finance in Erfurt has extended the program for guarantees for employee shareholdings in companies until the end of 2028. This program has existed since 1995 and is intended to protect employees if a company becomes insolvent and cannot repay employee contributions.

In individual cases, the guarantees from the Free State amount to 80 percent of the financing amount paid in, with a maximum amount of 250,000 euros per company. For employee financing in the form of loans, the maximum amount is one million euros per company, with the minimum term of the financing being five years. Finance Minister Heike Taubert (SPD) emphasized that employee financing is a good way for companies to retain employees and retain skilled workers, especially when setting up new companies.

This measure can have a positive impact on the market and the financial industry. The security that the state will step in in the event of bankruptcy could motivate employees to participate more in the company. This in turn can strengthen employee loyalty and lead to greater identification with the company. In addition, the possibility of employee share ownership could encourage start-ups and young companies to attract and retain new employees.

Overall, the extension of the program to provide guarantees for employee share ownership could provide positive impetus for the labor market and corporate development in Thuringia. This could help strengthen the competitiveness of companies in the region and increase its attractiveness as a business location.