COFAG, which is responsible for the Corona aid, has already paid out billions, but now the biggest problem is the so-called compensation: more than 10,000 companies have been waiting for more than 665 million euros since June (end of application period).
It means that many things have to be checked properly. But for those affected, who are urgently waiting for the money, that is no comfort. The consultancy firm financial ombudsman supports 700 companies in enforcing their claims.
Lawsuits filed in 30 cases
In some 30 cases, claims have even been submitted to the court. “I suspect that the Treasury Department is running out of money and that is why things are moving so slowly,” said Finance Ombudsman Gerald Zmuegg.
“slow processing”
For applications up to 50,000 euros you will quickly receive the money from COFAG, up to 100,000 euros you sometimes have to help with a phone call. It is often difficult about that. Zmuegg: “The slow processing has reached an unbearable level.” He also criticizes imprecise guidelines as the cause. As a result, businesses have trouble paying health insurance or financial bills.
Zmuegg complains that this could even lead to bankruptcies. After all, some companies had to build up a mountain of debt despite promised aid payments.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
