KfW

Portrait for @ericof
by @ericof
2020-06-27T21:30:01+00:00
Business • Economy
German development bank KfW could lose €100 million from Wirecard insolvency
Wirecard Headquarters, Aschheim
Wirecard Headquarters, Aschheim Credit: Leo Molatore (Creative Commons Attribution 2.0)

KfW, Germany’s state development bank, could lose €100 million euros after Wirecard filed for insolvency last Thursday.

Ipex Bank, a KfW subsidiary, granted Wirecard the sum over a credit line two years ago and the funds were fully drawn down but were not hedged by Ipex.

Portrait for @ericof
by @ericof
2020-05-01T15:58:18+00:00
Regional News • Europe • Germany
German Goverment to take a 25.1% stake in Lufthansa
Planes parked in Frankfurt
Planes parked in Frankfurt Credit: Oliver Roesler (Creative Commons Attribution ShareAlike 4.0)

Der Spiegel reports Lufthansa is seeking a €10 billion bailout that would give the German government a massive stake (25.1%) in the airline.

According to the news magazine, the government will hold over half of the stake — €5.5 billion — as a silent partner, for which they will receive a guaranteed return of 9%, and the state-owned development bank Kreditanstalt for Wiederaufbau (KFW) will also contribute another €3.5 billion.

The German flag carrier has said it is losing €1 million an hour due to the Covid-19 pandemic, as it is currently flying around 1% of its normal flight schedule.