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Saxony Halts Repayment of Corona Economic Aid

The finance ministry has ordered the Sächsische Aufbaubank to pause recovery demands to consider easing repayment terms or clarifying aid forgiveness criteria.

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Overview

  • The suspension covers federal Soforthilfe-Zuschuss Bund and Überbrückungshilfe programs that disbursed about €2.9 billion to nearly 98,000 Saxony recipients.
  • Economic Minister Dirk Panter said entrepreneurs had reported existential pressures under existing repayment demands and required immediate relief.
  • Prior to the moratorium, some 27,600 repayment proceedings were active and another 29,000 were expected, while over 49,000 cases had already been closed.
  • Green Party lawmakers, the AfD and Bündnis Sahra Wagenknecht had all called for a moratorium, and CDU economic spokesperson Kay Ritter welcomed the pause as vital breathing room.
  • Officials will now examine concrete options for adjusted repayment conditions and define clear criteria for when aid need not be repaid.