Insider: Government guarantees could weigh heavily on Siemens Energy - shares up sharply
According to insiders, the guarantees granted by the German government could prove costly for the crisis-hit Siemens Energy. The company may have to pay around 500 million euros over the next three years, according to reports.
The DAX-listed company needs guarantees worth billions in order to work off its order book, which has ballooned to over 100 billion euros. The federal government had promised guarantees amounting to 7.5 billion euros. Siemens Energy did not comment on this. There was also no word from the Federal Ministry of Economics. Wirtschaftswoche" was the first to report on the sum. The Siemens Energy share price rose by 8.8 percent.
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- Despite the state guarantees, the potential costs for Siemens Energy could exceed 500 million euros, acting as a potential 'plus' in the company's balance sheet over the next three years.
- The Insider report suggesting substantial guarantees for Siemens Energy has led to a significant boost in the 'share price' on the stock exchange day, reaching an 8.8% increase.
- Some critics argue that, similar to the 3 billion Saar Fund, the state guarantees offered to Siemens Energy could potentially violate fiscal laws and principles, raising concerns about long-term budget implications.
- Analysts and economists are debating whether further 'plus' for the insolvent companies like Siemens Energy through state guarantees will lead to a sustainable recovery in the Energy sector or contribute to an ongoing dependence on government support.
Source: www.ntv.de
