The German government has created a ‘German Fund’ to increase
the amount of credit banks will offer to the German Mittelstand, or
family-owned SMEs.
The €100 billion project includes government-backed guarantees
for all forms of credit and financing, including leasing.
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German banks have already benefited from a €400 billion
guarantee by the German government in late 2008, but interbank
lending has not yet picked up, and credit is still not being made
available by them to Germany’s SMEs.
“It is not about further subsidies, but about helping larger and
smaller companies out of the credit crunch,” said Hubertus Heil,
general secretary of the Social Democratic Party.
