Banks to Berlin: Loosen coronavirus cash rules for firms

Bank lobby: Commerzbank AG headquarters in Frankfurt, Germany. The bank caters to the Mittlestand companies that form the backbone of the German economy. Most of the firms are avoiding state heip, threatening recovery from the Covid-19 outbreak. — Reuters

FRANKFURT: Germany’s bank lobby is set to urge the government to drop some of the conditions attached to a trillion euro rescue scheme, arguing that companies are so reluctant to take the help that it threatens any recovery from the coronavirus outbreak.

Martin Zielke, the head of the lobby and Commerzbank, will appeal this week to limit conditions – like pay caps and board seats – for government cash injections into companies, sources said.