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Greece PM announces additional 2.5b euros stimulus measures

Christian Fernsby |
Prime Minister Kyriakos Mitsotakis announced additional 2.5 billion euros in support measures in an effort to keep the economy afloat.

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Topics: GREECE   

The new aid comes on top of 24 billion euros which were allocated to support employees and businesses in 2020. The stimulus package for 2021 will reach 11.6 billion euros, he said.

“Our goal now is for the people in production to stay on their feet until the end of the ordeal.”

The new stimulus package is designed to provide support to more than 500,000 businesses, freelancers and millions of workers, Mitsotakis said.

Outlining the stimulus package, Finance Minister Christos Staikouras, announced a 50% state subsidy in the first three rounds of the public support through the “repayable advance payments” granted to enterprises and free lancers in 2020. Staikouras also announced a next round of “repayable advance payments” in April.

The government will also expand the repayment periods of state loans from 40 to 60 tranches while it will offer subsidies for fixed costs such as social insurance contributions, energy, water, telecommunications, rents, other operating expenses, capital expenses incurred in 2020.

Moreover, a debt-servicing subsidy program for very small, small and medium-sized enterprises and self-employed affected by the coronavirus pandemic.

The relief program will be similar to the “Gefyra” program, the temporary mortgage instalment scheme which protects the primary residence of the COVID-19 affected households. The program envisages the subsidy of monthly payments of corporate loans for eight months, covering both capital and interest, without any ceiling on debt. The cost of the measure is estimated at 300 million euros.

Deferrals of tax payments will also be extended.

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