Some 67 billion euros in credit authorisations are to be transferred from the WSF economic stabilisation fund to state development bank KfW, the Handelsblatt business daily reported, citing government sources.
This will bolster KfW's ability to provide guarantees and liquidity assistance to energy companies hit by drastic reductions in gas imports from Russia, the finance ministry said.The German cabinet is expected to approve draft legislation for the boosted credit funds on Wednesday, which will then be put to parliament.
The ministry said the WSF's long-term borrowing authorisation suited the current situation as it was unclear how long the country's energy woes would last. Last week, VNG [RIC:RIC:VNG.UL], one of Germany's biggest importers of Russian natural gas, became the latest energy firm to ask the government for aid to stay afloat.
So, money makes electric power with interest?