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Lex in-depth: why rescue finance will slow recovery for businesses

By Jonathan Guthrie, Andrew Whiffin and Pan Kwan Yuk
Financial Times·
11 mins to read

"Shared pain is halved pain," says Fritz Joussen, chief executive of Tui, Europe's largest holiday group. The towering German is referring to phone conversations with a US cruise line boss during the first chaotic days of national lockdowns. But he might as well have been talking about state backed-loans. Billions of euros from a Frankfurt development bank saved Tui from imminent collapse, stockholders from wipeout and unlocked private credit.

"One Monday we woke up and our levels of business were

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