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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure DE-2022-20/2287 Updated – measures in Germany

Loan guarantees for companies affected by the war in Ukraine


Country Germany , applies nationwide
Time period Temporary, 09 May 2022 – 31 December 2023
Context War in Ukraine
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Deferral of payments or liabilities
Author Sandra Vogel (IW)
Measure added 16 May 2022 (updated 27 February 2023)

Background information

Against the background of war in Ukraine, the German Federal Government has rolled out (financial) aid measures for businesses affected by the war. On 8 April 2022, the Federal Government adopted measures to help companies suffering from the negative impact of the war in Ukraine and/or sanctions against Russia and Belarus. Whilst further measures are still debated, the Kreditanstalt für Wiederaufbau (KfW) UBR Special Programme is already available for companies affected by the war. UBR is the acronym for Ukraine, Belarus and Russia.

Content of measure

The Kreditanstalt für Wiederaufbau (KfW) is Germany's promotional bank owned by the Federal Republic of Germany (80%) and the German federal states (20%). Since 9 May 2022, war-affected companies can apply for a new loan programme hosted by KfW. It was set up to help safeguard the liquidity of war-affected companies (of any size and from any sector).

If companies apply for investment or working capital loans worth up to €100 million at their house bank, the KfW will assume 80% of the liability for small and medium-sized companies. The latter are being defined as having earned a turnover of up to €500 million. For larger companies, the KfW will assume 70% of the liability. However, to receive these conditions, applicants must prove that they have been negatively impacted by the sanctions against Russia or Belarus and/or the war in Ukraine. Negative impacts can include one of the following circumstances:

  • decline in revenue due to lost sales markets,
  • production losses or facility closure in either the Ukraine, Belarus or Russia,
  • production downtime as raw materials and primary products are lacking, or
  • suffering strongly from the rising energy costs and proving that the applicant’s annual turnover in 2021 included at least 3% of energy costs.

If any of these conditions apply, loans can be granted for a maximum duration of six years at a fixed interest rate. During the first two years, the house bank can suspend loan repayments. As an alternative, companies can also apply for syndicate financing and agree on individual loan structures for a maximum of six years. In this case, KfW will agree to the conditions set by the house bank providing the loan.


The following updates to this measure have been made after it came into effect.

22 November 2022

Due to the ongoing war in Ukraine and its negative impact on German businesses, the programme was prologned until the end of 2023.

Use of measure

On 10 August 2022, KfW bank reported that companies did not apply much for grants in this programme. By that time, the bank had committed to €14 million in grants.

On 10 November 2022, KfW bank stated that demand for the UBR credits was still low. The bank had issued grants worth €91 million since the start of the programme.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: N/A


In Germany, social partners are usually consulted on larger measures related to social or labour market issues. At the moment is unknown, if consultations took place regards the latest relief package for companies.

Views and reactions




Eurofound (2022), Loan guarantees for companies affected by the war in Ukraine, measure DE-2022-20/2287 (measures in Germany), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.