Sun. Mitsotakis: Package of new measures to support the economy

A package of new measures to support the economy to boost businesses, self-employed professionals, and workers across six sectors, the government announced, as stated by the prime minister in a statement Kyriakos Mitsotakis.

«From the very moment the pandemic, I had emphasized that prioritizing public health must go hand in hand with shoring up the economy. That is precisely why, alongside the titanic effort to strengthen the ESY In 2020, 24 billion was allocated to support workers and businesses. »And today, an additional 2.5 billion is being mobilized, bringing the total funding for 2021 to 11.6 billion,” the prime minister emphasized.

«In spite of the irresponsible doomsaying, all the data show that the national economy held up. Despite unprecedented difficulties, we had very few business closures. In terms of keeping unemployment in check, the country had the second-best performance in Europe. And The recession was limited to 8.2%, contrary to the opposition’s gloomy predictions. Our goal now is to ensure that the manufacturing sector remains afloat until this crisis is over, thereby enabling it to take its first steps toward the future with greater confidence.

»Today, therefore, I can announce a new package of stimulus measures that will provide relief to more than 500,000 businesses, self-employed individuals, and millions of workers," he emphasizes.

Kyriakos Mitsotakis explains in detail that the measures cover six areas:

«First, The 7th funding cycle of the Refundable Advance Program will be launched in April for businesses that experienced a decline in revenue from January through March. It will be expanded to include all those affected, such as the retail sector, the restaurant industry, and sectors where restrictions were imposed. It will also provide increased financial support: Amounts will start at 1,000 euros for a self-employed individual and go up to 100,000 euros.

Second, the exemption from 30% through 50% regarding repayment of the Refundable Advance, will also apply to those who participated in the first three rounds of the program and experienced a significant drop in revenue in 2020. Meanwhile, the number of repayment installments is increasing from 40 to 60. Furthermore, if the repayment is made in a single lump sum, there will be a 15% discount. Thus, a large portion of the aid is converted into a direct grant—in other words, a non-repayable advance.

Third, with the aim of protecting jobs, the affected sectors will receive relief through yet another measure: The government will subsidize a significant portion of the fixed costs incurred in 2020, which were not covered by other aid. This specific aid will take the form of a «credit» toward their future tax and social security obligations, with the aim of enabling businesses to restart after the crisis with as few burdens as possible.

Fourth, the Bridge Program The loan restructuring program will, for the first time, include not only households but also businesses, by subsidizing, for the first time as well, in addition to the interest and the principal. For loans in good standing, the subsidy will cover up to 90% of the installment, in order to reward consistent borrowers. Meanwhile, for «non-performing» loans, it will reach 80% if they are restructured, in order to help the most vulnerable.».

The prime minister points out that «these choices are complemented by two additional initiatives: As has been the case up to now, The March tax and social security debts of those affected will be carried over to the end of the settlement period. »The full rent exemption for commercial properties remains in effect this month as well.".

In closing his statement, he notes that «this specific plan will be presented in detail in a short while by the economic team. These are, however, measures made possible by the sound economic policy that preceded them. As does the proper use of cash reserves over the past period. They pave the way for our safe transition to the post-COVID era. And they demonstrate that the government knows how to—and is capable of—responding to the demands of the current situation as well as the needs of society, with confidence in the Greek people and in our country’s potential.».