Greek gov’t presents fourth package of economic support measures

Greek Finance Minister Christos Staikouras on Monday presented a new package of eight measures to support enterprises and workers during the month of April, along with raising a supplementary budget by 5.0 billion euros (from 4.0 billion). Presenting the measures, the Greek finance minister said the economic support measures reached 6.8 billion euros so far, or 3.5 pct of GDP and noted that the damage to the economy because of the pandemic will be significant in the short-term, but temporary.

More specifically, the fourth package of measures envisage: the expansion of an emergency financial support of 800 euros to 1.7 million workers, or 81 pct of the total workforce in the private sector. The support is tax free, with the government covering all social insurance contributions for 45 days, along with a four-month suspension of all tax payments (a 25 pct discount is offered for regular payments). Also, more enterprises will be offered protection measures and safeguarding job positions, covering 800,000 enterprises. These will be offered VAT payment suspensions and other tax payments suspensions on the condition that they maintain all existing job positions. The measures also covers around 700,000 professionals, self-employed and owners of small enterprises. The finance ministry has additionally introduced a financing tool worth 1.0 billion euros with a no-job loss clause to enterprises. The Easter bonus to workers will be paid in full by all enterprises. The ministry will pay an extra bonus to 108,000 workers in hospitals and the Civil Protection Authority. Banks and loan managers will have to faciliate loan repayments for all households and enterprises with up-to-date accounts, while the finance ministry is promoting measures to support parts of the primary sector hit by the crisis.

Finally, a supplementary budget, drafted to implement economic support measures, will be raised to 5.0 billion euros.