State Corona Aid Settlements Slowly Progressing in Mecklenburg-Vorpommern
As outlined by the Economic Affairs Ministry in Schwerin on Tuesday, only approximately 6,000 out of the anticipated 23,700 invoices for state Corona aid in Mecklenburg-Vorpommern were received by the October 31 deadline. Defaulting companies received reminders and extended deadlines until January 31, 2024.
Nationwide, around a quarter of the companies that received state aid during the coronavirus crisis will have to repay some of it, as revealed by a preliminary assessment by the Berlin-based Ministry of Economic Affairs. Based on random samples of the 338,000 applications submitted so far for final settlement, this data was shared with the German Press Agency. Additionally, 40% of the companies will also receive additional payments.
Out of the 23,700 invoices expected for final settlements, only 6,000 have been received in Mecklenburg-Vorpommern to date (as of October 31). This includes all phases of bridging aid, including November, December, and new start aid. A sum of 344 million euros in emergency aid was approved and disbursed, with an additional 44.5 million euros granted through the new start programs.
The precise number of companies in Mecklenburg-Vorpommern that could face repayments or receive back payments due to additional losses remains unclear. Companies have a six-month period to make these repayment claims, and flexible repayment plans or deferrals can be arranged.
The Corona bridging aid was granted to companies threatened by a significant drop in turnover, conditioned on a final accounting at a later date. Companies must demonstrate the actual decrease in turnover and eligible fixed costs compared to the forecast. Reclamations might occur if actual turnover drop was lower than anticipated at the time of application.
Across Germany, approximately 13.1 billion euros in emergency aid and 63.3 billion euros for programs like November, December, and restart aid were distributed by the Federal Ministry of Economics.
Mecklenburg-Vorpommern’s economic policy in response to the Corona crisis involves a review of economic aid payments, with around 23,700 invoices expected for final settlements, out of which only 6,000 have been received by the October 31 deadline. The economic situation of the defaulting companies has led to a nationwide assessment, revealing that around one in four companies that received state aid during the pandemic will need to repay some finances.
Although the enrichment data does not provide a specific percentage of companies that need to repay some finances in Germany, it implies that the focus has been on providing support rather than requiring repayment through initiatives such as KfW's Quick Loan Program offering two free years of repayment and a ten-year grace period with 100% risk assumption from the loan. For more detailed information on repayment rates, additional specific data or reports would be necessary.
