US, WASHINGTON (ORDO NEWS) — The head of the IMF, Kristalina Georgieva, announced the onset of a new economic crisis provoked by the coronavirus pandemic. According to her, bankruptcy and layoffs can undermine the global economic recovery. The head of the Organization for Economic Cooperation and Development, Angel Gurria, believes that the coronavirus was a greater shock to the global economy than the financial crisis of 2008-2009.
On March 25, the Cabinet of Ministers of Ukraine established an emergency regime throughout the country and extended until April 24 the national quarantine introduced on March 11. That is, in the next month, markets and shops (except grocery), cafes and restaurants will continue to be closed, flights will be prohibited and public transport will be limited, and private business will be paralyzed.
At the time of the coronavirus epidemic, the Ukrainian authorities adopted a number of laws providing for tax and customs benefits, a moratorium on fiscal inspections, and the freezing of fines and penalties. In particular, individuals-entrepreneurs for two months were canceled the payment of a single social contribution, fines and checks were canceled, the mandatory use of cash registers was delayed for three months, and land and real estate taxes were abolished.
Pensioners who receive a pension of up to 5 thousand hryvnias (there are more than 10 million of them in Ukraine), as well as citizens who need social assistance (about 400 thousand people), from April will be paid one-time assistance in the amount of 1 thousand hryvnias. In fact, these are the only direct payments during quarantine, in the amount they will amount to approximately 10.4 billion hryvnias, or about 365 million dollars. At the moment, direct payments and compensations for the business are not provided.
President of Ukraine Volodymyr Zelensky has already announced that an extraordinary meeting of the Verkhovna Rada will be held next Monday, March 30, at which several bills related to supporting and stabilizing the Ukrainian economy will be considered. Whether these initiatives will be sufficient to support both business and citizens during the coronavirus epidemic, Gordon found out using anti-crisis measures from other countries as an example.
United States of America
After much debate about the size of state support and its transparency, the Donald Trump administration and the US Congress agreed on an anti-crisis package to support the US economy during the coronavirus epidemic. On March 27, the President of the United States signed a law on the allocation of funds to combat coronavirus. This is the largest law on economic assistance to citizens and business in the history of the United States. Before the crisis, the business industry was rich and vibrant, with multiple sources of business support and tools, and some of the best PEO in California as well. This was the backbone in the success of American businesses. But what does this law fully entail after the economic damage left by the pandemic?
2.2 trillion dollars – the total amount of funds that the United States will allocate to its citizens and private businesses to overcome the crisis caused by the coronavirus infection Covid-19.
US corporations will receive 500 billion, of which 17 billion will go to Boeing Corporation, the world’s largest manufacturer of aviation, space and military equipment; 25 billion will be received by companies engaged in passenger transportation; 4 billion – air cargo companies.
367 billion allocated to small businesses.
130 billion will go to local governments and state governments.
100 billion are provided for the needs of US medical institutions.
324 million allocated for the evacuation of Americans from abroad, according to preliminary data, there are about 10 thousand people around the world.
1 thousand 200 dollars of one-time government assistance will be received by every American with a salary of up to 75 thousand dollars a year. Checks with this amount will appear in the mailboxes of all taxpayers in May 2020.
$ 600 per week – additional payments to unemployment benefits for 13 weeks from the date of application for the loss of work due to the coronavirus epidemic. In the United States the other day, a record increase in applications for unemployment benefits was recorded: more than three million people filed applications.
$ 500 one-time assistance for each child will be paid to families with children.
In addition, the US Congress will increase the salary of medical personnel and doctors, as well as hospitals in general. Students will receive a deferment in payments for education until September 30, 2020. Property owners who have lost their jobs due to coronavirus or are experiencing financial difficulties will be able to not pay the mortgage within 60 days. Residents who have lost their jobs due to the coronavirus epidemic and have not paid rent are not allowed to be evicted within 120 days.
On March 25, the Bundestag adopted a package of measures to support German citizens and enterprises in the context of the coronavirus pandemic. This is the largest anti-crisis program in the history of Germany.
750 billion euros (about 802 billion dollars) – the total amount of funds that will be allocated to combat the economic consequences of coronavirus infection Covid-19.
500 billion euros – the total budget of the Economic Stability Fund, which is planned to be created in the near future. The fund will invest in private companies in exchange for the redemption of their share of ownership, as well as provide credit guarantees.
100 billion euros will go to business support programs through the state bank KfW.
50 billion euros – the volume of a nationwide program to support microenterprises and self-employed citizens. This money will be taken from the adopted additional state budget for 2020 in the amount of 156 billion euros.
Up to 15 thousand euros will be paid once to all enterprises with a staff of not more than 10 people; up to 9 thousand euros – with a number of not more than five people. Deutsche Welle clarifies that this money is intended primarily to pay for rental of premises, leased equipment and loans. Conditions for receiving assistance: it is necessary to prove that enterprises faced economic difficulties after March 11, when the World Health Organization declared the spread of coronavirus a pandemic.
60% of their earnings will be received from the state by those workers whose enterprises are forced to stand idle due to the epidemic. Those with at least one child are entitled to 67%. According to government forecasts, over two million workers may soon switch to such a regime.
Germany will borrow the funds necessary for anti-crisis measures by placing government bonds on the stock market. In order to cope with the impending crisis, it was decided to remove the limit threshold for public debt enshrined in the constitution.
In mid-March, Chancellor of the Exchequer, British Minister of Economics and Finance, Rishi Sunak announced an unprecedented amount to be allocated to support businesses affected by the outbreak of coronavirus, as well as a number of tangible anti-crisis steps. The government is ready to grant a deferment of payments on basic taxes – income and VAT. All retail, hotel business and private educational institutions await tax breaks. The authorities are ready to finance part of the salaries of employees of small enterprises, so that there are no cuts.
330 billion pounds (approximately 382 billion dollars) – allotted by the government to support the entire business, this is more than 15% of the country’s GDP and more than a third of the kingdom’s budget.
2.2 billion is envisaged to support small businesses. According to official figures, out of 66 million people in the UK in small business (the number of employees is up to 250 people, turnover is up to 1 million pounds a year), 5.9 million people are employed, which is about 8% of the country’s population.
1 billion to support tenants. The government has increased housing benefits and credit so that local housing benefits cover at least 30% of market rents. On the topic of housing, the property market hasn’t taken as much of a hit as other parts of the economy with a larger number of sales still being made. Those who go to good mortgage brokers while looking for a new home will have their needs met, even in such uncertain times. More measures are expected to be made by the government to ensure the property market doesn’t decline any further.
Up to 25 thousand pounds – a one-time grant that will be allocated to small businesses like pubs, clubs and theaters so that they do not go bankrupt during the epidemic. The rest of the small business can count on one-time grants of up to 10 thousand pounds. Tourism and entertainment business for a year will be exempt from property tax.
At least 80% of the current salary (up to 2 thousand 500 pounds a month) is compensated by the British government to employees of private companies who have lost the opportunity to work due to restrictions on the fight against coronavirus.
According to the French government, as a result of the coronavirus pandemic, the national economy will fall by 1% in 2020. President of the Republic Emmanuel Macron, referring to the nation, said that the authorities would not allow the bankruptcy of any company. The French authorities to support the state’s economy have planned to highlight:
300 billion euros (about 321 billion dollars) – the amount that the French authorities intend to provide as state guarantees for loans to small and medium enterprises.
45 billion euros have been allocated to compensate employees whose businesses have closed, as well as to compensate the companies themselves affected by the coronavirus pandemic. In addition, legal entities are granted the right to defer tax and social payments.
Up to 4 billion euros under the government anti-crisis plan will be allocated only for startups. There are a lot of tax reductions going on in the country that a lot of people aren’t aware of.
If you’re one among them who’s confused about the taxes, you could learn more about them by visiting Elitax (to know more, click here).
2 billion euros aimed at supporting micro-business.
In addition, according to French Minister of Economy Bruno Le Mer, at the European level, loan guarantees will be provided for 1 trillion euros, and a solidarity fund will be created for small enterprises, the size of which will be at least 1 billion euros. Small enterprises will receive support from it, the annual turnover of which fell by 70% by March 2020.
The Polish authorities announced a project a few days ago entitled “Economic and Social Anti-Crisis Shield for the Safety of Entrepreneurs and Workers in Connection with the SARS-Cov-2 Virus Pandemic”. According to Prime Minister Mateusz Moravecki, anti-crisis measures will be taken in five directions:
protecting workers from job loss;
financial system security;
support for entrepreneurs;
212 billion zlotys (approximately $ 46 billion) – as much as Poland has allocated to support its economy during the pandemic.
40% of wages will be covered by the state for those companies that will avoid the dismissal of employees.
30 billion zlotys are supposed to be allocated for state investments, including roads, digitalization, the transformation of the energy sector, and the modernization of schools.
7.5 billion zlotys – allocated to support the health system.
The Italian government approved a decree providing for the allocation of:
25 billion euros (about $ 27 billion) – for damages from the coronavirus, saving the economy and supporting citizens. For example, for companies whose turnover due to quarantine has fallen by more than 25%, the state will provide partial compensation for losses.
3.5 billion euros are provided for financing the Italian health system.
Up to 5 million euros will be allocated as a loan for small and medium-sized businesses.
More than 50% of the rent is compensated by companies closed due to quarantine.
Travel guides and other workers affected by the crisis will receive 600 Euros per person. The same amount will be allocated to working parents to pay for babysitting services for a child under 12 years old.
100 euros will be paid additionally to citizens with an annual income of not more than 40 thousand euros, who continue to work in quarantine.
In addition, payments on loans and mortgages for business and the public will be suspended, and according to the plans of the Italian government, state guarantees for banks will cover them.
The Czech authorities offer companies to fully compensate not only hospital employees who are in home quarantine, but also up to 80% of wages in certain areas, for example, in the restaurant, tourism and retail business, forced to suspend work due to the coronavirus epidemic. The Czech government proposed the following:
17 billion kroons (about 597 million dollars) – the size of the package of anti-crisis measures proposed by the Czech government, it is designed for six months.
From 1.5 to 15 million kroons of interest-free loans can be taken from a state bank to pay salaries to companies that are forced to stand idle due to quarantine. Loan repayment term – up to two years.
14 thousand kroons – monthly payments for quarantine to all self-employed citizens with children under 13 years old.
50% of the salary promise to cover the Czech authorities to those businesses that did not stop their activities during the quarantine period, but still suffered from an epidemic. For example, these are enterprises with limited access to necessary materials due to quarantine measures, and companies that have experienced a reduction in demand.
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The article is written and prepared by our foreign editors from different countries around the world – material edited and published by Ordo News staff in our US newsroom press.