Note on loan financing:
Under section 9 (5) of the Stabilisation Fund Act, the Federal Ministry of Finance is authorised to borrow up to €60bn for the Financial Market Stabilisation Fund so that the Fund can grant loans to resolution authorities for the purpose of refinancing assets that they have taken over (as per section 8a (10) of the Stabilisation Fund Act). Such borrowing is neutral overall in terms of debt, because it replaces the funds that resolution authorities would otherwise have to borrow on the market. However, it does increase the debt level in federal securities. Under section 24 (1) in conjunction with section 23 of the Stabilisation Fund Act, the Federal Ministry of Finance is authorised to borrow up to €100bn for the Economic Stabilisation Fund for the purpose of granting loans. Under section 23 of the Stabilisation Fund Act, the Economic Stabilisation Fund can grant loans to KfW for the purpose of refinancing the special programmes assigned to it by the federal government in response to the coronavirus crisis. As part of the expansion of the Economic Stabilisation Fund aimed at mitigating the impact of the energy crisis, the Federal Ministry of Finance was authorised to borrow €200bn in 2022 (as per section 26b (1) of the Stabilisation Fund Act). The amounts that become due for repayment can be refinanced. Pursuant to section 26a (1) no 4 of the Stabilisation Fund Act, the Stabilisation Fund may grant loans to KfW to refinance certain programmes and support measures that were assigned to it in the context of the energy crisis.

Any discrepancies in totals are due to rounding.

Source: Federal Ministry of Finance