Jan. 8 (Bloomberg) -- The German government is considering a 100 billion-euro ($136 billion) fund to help companies struggling to obtain credit, Handelsblatt newspaper reported, citing a draft proposal by the Economy Ministry.

The fund would offer loan guarantees and other instruments for German firms facing what the draft says is “the worst economic crisis in decades.” The government approved a 480 billion-euro rescue package for banks in October that comprises credit guarantees.

“The measures are aimed at all companies with financing needs,” Handelsblatt cited the draft plan as saying. The Economy Ministry failed to reply to telephone calls or e-mails.

Chancellor Angela Merkel is scheduled to meet in Berlin tomorrow with leaders of Germany’s Mittelstand, small and midsize companies that make up the backbone of the economy, amid evidence that firms are facing increasing difficulty obtaining bank loans.

Leaders of Merkel’s governing coalition are scheduled to meet Jan. 12 to approve a second economic stimulus package of between $40 billion and $50 billion. They may also approve the “protective umbrella” for companies then, Handelsblatt said.

Merkel on Nov. 25 urged banks to lend to companies and stop acting “like cart horses in winter.” Germany’s deteriorating economic outlook will become a self-fulfilling prophecy unless banks break the spiral by lending, she told businessmen in Berlin.

Of 4,000 companies surveyed by the Munich-based Ifo economic institute, 35.2 percent said credit conditions were “restrictive” in November, compared with 28.7 percent when last polled in August. Worst hit were bigger companies, where respondents complaining of tougher conditions jumped to 40.1 percent from 17.3 percent.

“In all four surveyed economic sectors -- manufacturing, construction, retailing and wholesaling -- the access to credit deteriorated,” Ifo said.

To contact the reporter on this story: Tony Czuczka in Berlin at aczuczka@bloomberg.net

Last Updated: January 8, 2009 03:23 EST