The Economic Stabilization Fund rebounds with earnings.
In the midst of the coronavirus pandemic, the German authorities establish the WSF aid fund to support companies. It initially had the potential to support up to 600 billion euros. The fund has subsequently been modified to lessen the impact of the energy crisis. Last year, the fund posted a financial surplus.
The German Economic Stabilization Fund (WSF), set up during the pandemic in 2020, has ended its financial year with profits for the second time. By the end of December 2023, the fund's balance sheet indicated a profit of 109.7 million euros, as per the Federal Finance Agency in Frankfurt. A year before, the fund had reported a loss of 26.3 million euros, while a gain of 104.1 million euros was recorded in 2022. In its first year, the WSF had recorded a loss of 25.9 million euros. The federal government's financial managers attributed the increase in 2023 to earnings from early fund repayments and interest income.
The federal government formed the WSF to directly help businesses impacted by the coronavirus pandemic. Distressed firms could access up to 600 billion euros through the initiative. By January 2022, the fund's scope had been reduced to 250 billion euros. Lufthansa and the tourism company TUI were among the companies that received assistance from this fund.
The fund's initial tenure was until the end of 2021, but an extension allowed it to continue sanctioning stabilization measures until 30th June 2022. The WSF gave commitments for aid worth over 9.6 billion euros to 25 companies. By the end of the previous year, 6.4 billion euros had been disbursed, and 4.4 billion euros had been reimbursed by the balance sheet date. Besides direct and indirect investments, the fund's tools include financing changes through the state-run development bank KfW. The WSF was also employed between November 2022 and December 2023 to finance actions mitigating the repercussions of the energy crisis.
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Despite the ongoing Corona crisis and the related measures, the German Economic Stabilization Fund (WSF) managed to achieve a financial surplus. Nevertheless, the fund adjusted its support to mitigate the impact of the subsequent energy crisis, also providing aid to companies affected by the Attack on Ukraine.
Source: www.ntv.de
