Hypovereinsbank boss fears no bankruptcy wave in Germany

Michael Diederich, the spokesman for the board at Hypovereinsbank, does not believe in a wave of bankruptcies.

On the contrary: “Germany and German politics did a good job during the crisis,” Diederich told the “Frankfurter Allgemeine Zeitung” (Thursday edition). "With the lockdown, the industrial heart of an economy was stopped."

Thanks to the KfW loans and the Economic Stability Fund, one can now hope for a recovery in the coming year, said the board spokesman. The promotional bank KfW launched several loan programs at the behest of the federal government in the spring, including the so-called quick loan, in which the state completely relieves the house banks of the liability risk. As of the beginning of August, HVB committed around 3.000 of these promotional loans with a volume of three billion euros, reports the FAZ. “Our market share in promotional loans for companies affected by Covid-19 is one and a half times as high as our market share in traditional corporate loans. And currently we have almost no write-downs in our books that are related to Covid-19, ”he said.

Because of the frequent granting of quick loans, Diederich does not expect defaults to be above average. Nor does he anticipate any bottlenecks in lending to companies: “Of course, there is currently a little less demand from companies for loans that are used to finance specific takeovers or expansion investments. But a credit crunch is absolutely not to be feared as long as the KfW loans exist and the ECB supplies the markets with liquidity. "