TUI rescue package includes ban on bonuses, dividends - ministry

FILE PHOTO: People wear face coverings as they stand outside a Tui travel agents shop following the outbreak of the coronavirus disease (COVID-19) in Chester, Britain, August 10, 2020. REUTERS/Phil Noble/File Photo

BERLIN (Reuters) - The German government will shoulder up to 1.1 billion euros (993 million pounds) of the 1.8 billion euros rescue package for struggling holiday company TUI and the deal includes a ban on executive bonuses and dividends, an economy ministry spokeswoman said on Wednesday.

The government’s new economic stabilisation fund WSF will inject 700 million euros through a mixture of equity and hybrid capital dubbed silent participation, the spokeswoman said.

The federal government will negotiate with state governments about contributing an additional 400 million euros in state aid, the spokeswoman added.

Reporting by Michael Nienaber, editing by Emma Thomasson