EU Commission Building

EU Commission Approves German Billion-Dollar Aid

Green light for German corona aid package: The EU Commission has approved a €600 billion rescue package for companies in crisis. This money is also intended to support Lufthansa.

The EU Commission’s competition authorities have approved the rescue package for companies set up by the Federal Government. They concluded that the Economic Stabilization Fund (WSF), which has a budget of EUR 600 billion, is in line with EU rules loosened in the Corona crisis. Accordingly, no disproportionate distortions of competition are to be expected.

The aim of the fund is to support companies with money that got into trouble through no fault of their own in the Corona crisis. There will also be a €400 billion guarantee framework to help companies refinance themselves on the capital market.

In addition, a credit authorization of more than 100 billion euros for the direct recapitalization of companies and a further credit authorization of more than 100 billion euros for the refinancing of the special programs of the Kreditanstalt für Wiederaufbau (KfW) is planned. The commission had already approved KfW’s aid.

Finally, Significant Easing For Government Aid

For example, the Federal Government wants to use the WSF to get Lufthansa through the crisis. The airline is facing significant difficulties because the corona pandemic has brought business, with the exception of freight, to a nearly complete standstill with the following travel restrictions.

The Brussels authorities had recently relaxed the rules for state aid because of the Corona crisis. However, it continues to monitor that aid packages do not lead to disproportionate distortions of competition in the internal market.

Bank of Mozambique Extends Measures on Electronic Payments

The Board of Directors of Banco de Moçambique announced today the extension for three months, starting on Friday, of measures taken in the scope of the COVID-19 pandemic to facilitate the use of electronic payment systems.

Electronic money mobile wallets used through mobile devices no longer charge charges and commissions on transfers from client to client up to the daily limit of 1,000 meticais (Mozambican currency).

The limits per transaction in mobile portfolios have been increased and the commissions and charges to be charged for the new limits should not be higher than the maximum price in force.

Banks no longer charge fees and commissions for transactions made through digital channels, up to the daily maximum limit of 5,000 meticais for individual customers, except in the case of withdrawals from ATMs.

Other measures decided by the central bank include halving commissions and charges on transfers between banks and electronic money institutions to individual customers.

“The adoption of the measures does not exempt compliance with the rules and procedures related to preventing and combating money laundering and financing of terrorism”, notes the Bank of Mozambique.

Mozambique has an accumulated total of 1,040 cases of infection with the new coronavirus, with eight deaths and 280 recovered.

In Africa , there are 11,698 confirmed deaths in more than 495,000 infected in 54 countries, according to the most recent statistics on the pandemic in that continent.

The pandemic of COVID -19 has caused more than 539,000 dead and infected  more than 11.69 million people in 196 countries and territories, according to a report prepared by the French agency AFP

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