Coronavirus changes budget – New support measures are coming

The financial staff is ready to activate emergency financial measures in the areas that have meant a “red” alarm, making adjustments to the list to support employees and companies, with the explosion of cases raising the “bill” at the same time and as a result. The liquidity cushion that the previous government “built” (approximately 37.5 billion euros), mainly by drawing liquidity from the markets, gives a flexibility to create new conditions for the fiscal forecasts, but also for the recession of 2020. to deal with the crisis, however, the new outbreak of the coronavirus signals prudent action, based on health conditions and accordingly, the support packages will be extended beyond the 24 billion euros foreseen in the draft. Competent sources say that a support strategy has been formed. , dynamic, which will be formed by regions, depending on how much they are affected by the coronavirus. In the areas that have signaled a “red” alarm, the emergency measures of financial support of companies, employees and professionals are activated. With the outbreak of the pandemic, in the first half of 2020, the government received a series of interventions and according to the budget, these interventions are worth a total of 24.156 billion euros, of which 21.468 billion euros relate to 2020 and 2.688 billion. Euros are expected to influence the 2021 fiscal result. 8.2%. A crucial factor is the data of the Statistical Service for the third quarter that will record the losses in tourism. Last week, IOBE cut the wings of optimism for a recovery in 2021 to 7.5%, mainly due to the Recovery Fund (baseline scenario 5.5%). The Institute’s economists see a contraction of the Greek economy by 8% this year, while with a new lockdown could be extended to 10% due to the unprecedented effects of the pandemic. Unemployment is expressed after the expiration of the measures to strengthen companies and appears cautious about the recovery of 2021, even warning of the risk of continuing the recession in the unfavorable scenario. The possibility of a new lockdown and if no vaccine is found for Covid – 19 may bring a recession in 2021. According to IOBE, growth in Greece is projected between 4% and 4.5% in the basic scenario, while in the alternative estimates that the economy could shrink from -2.5% to 4%. Fiscal forecasts 2020 and 2021For this year, tax revenue is projected to collapse to 44 billion euros, mainly due to tax arrears and the recession, where according to the draft budget the fiscal deterioration leads to a total deficit of 14.7 billion euros or 8, 6% of GDP, while the primary deficit of 2020 is estimated at 9.7 billion euros (5.7% of GDP) and 10.6 billion euros (6.2% of GDP) in terms of enhanced supervision. The total reduction of revenues from taxes and insurance contributions in 2020 is almost 8 billion euros. Despite the losses of 2020, the financial staff of the government aims to increase the total increase in revenues from taxes and insurance contributions in 2021 to 5.9 billion compared to 2020, while the remaining € 3.1 billion can be attributed to the economic recovery. Special Provisions and regulations will also apply in Areas with epidemic load level 3. Employees of companies-employers who are significantly affected according to the expanded list of KAD April, can be temporarily suspended from employment and are entitled to special purpose compensation, proportional to the period set at a minimum of 14 days, estimated at EUR 534. For the above period, the full insurance contributions are calculated proportionally, calculated on the nominal salary from the state budget. For companies that close by order of a public authority, the employment contract of the employees is suspended and for as long as the suspension is valid, the dismissals are invalid. Companies, for an equal period after the lifting of the suspension are obliged to retain the same number of employees. For the self-employed, self-employed and business owners who employ up to 20 people and are significantly affected according to the expanded list of April, including disciplines, is given special purpose compensation, amounting to 534 euros on a monthly basis. In case the duration of stay at level 4 of the Regional Unit is 14 days or less, the monthly compensation amounts to 300 euros. For companies that are significantly affected according to the expanded list of KAD April, including scientific disciplines, it is possible to suspend payment of VAT payable in that month, until April 30, 2021. This debt will be repaid in 12 installments with zero interest rate or 24 installments with an interest rate of 2.5% from May 2021 onwards. Businesses that are significantly affected according to the extended list of KAD April, including scientific disciplines, are entitled to a mandatory reduction of rent by 40% on their commercial real estate. The same applies to the main and student residence of suspended employees. For the owners who rent real estate in these companies and the above employees, 1/3 of the loss is offset against their tax obligations. In the Repayable Advance 4 that will be given in December, 50% of the state loans are not repaid. The total support of the real economy from the three financing instruments amounts to 7.9 billion euros, according to the Ministries of Finance and Development, while estimating that by the end of the year, additional resources totaling about 11 billion euros will be available. Within about 6 months, the following have been channeled: – € 3.1 billion through the three rounds of the Repayable Advance, – € 3.1 billion through the Guarantee Fund, and – € 1.7 billion through the TEPIX II. By the end of the year, it is estimated that additional resources totaling approximately 3 billion euros will be available from TEPIX II, the second phase of the Guarantee Fund, the completion of the 3rd cycle and the launch of The implementation of the 4th cycle of the Refundable Advance and thus the total “injection” of liquidity will be around 11 billion euros, in a period of 9 months. Follow it on Google News and be the first to know all the news See all the latest news from Greece and the world, in

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *