A new package of support measures is coming because of Omicron

Of Tasos Dasopoulos

Multi-speed measures that will be implemented depending on the duration of the restrictions and the damage they will cause are being prepared by the Ministry of Finance to cover part of the loss in sectors such as catering, entertainment, theaters, cinemas, gyms and playgrounds.

A point of reference will be Friday’s decisions on whether to continue or tighten the social distancing measures imposed by the rapid spread of the “O” mutation.

At the forefront of the package of measures that can be implemented immediately is the extension of the measure of suspension of employment contracts with employees being paid with the special purpose compensation of 543 euros.

If the restrictions are extended until the end of the month (which is possible) there is information from both the Ministry of Finance and the Ministry of Development, that some direct assistance to companies that are directly affected is being considered.

This aid is expected to take the form of aid given at the opening of the market or through some government-guaranteed loans. Beneficiaries will be those who will be able to prove based on their statements that they had a turnover reduction of more than 20% compared to 2019.

However, this immediate aid will be discussed at the end of the month. The reason is that then the data will be available on the turnover of companies active in catering, entertainment and other sectors that have been affected by the measures of social distancing, especially during the holidays.

They are also considering whether the restrictions will continue in February, to provide tax and insurance facilities in the form of deferral of payment of current liabilities. By the same token, the repayment of the pandemic’s debts can be extended – indirectly – through the regulation from 36 to 72 installments.

Given the reluctance of companies to join the regulation, the deadline for accession, which expires on January 26, can be extended by another month, in order to pass under the radar of the institutions.

In the meantime, all businesses have benefited from the extension of the repayment start of 3 billion from the repayable advances and the measure of covering the fixed expenses, – for those who have a balance in their credit note – until the end of June.

Low cost measures

However, competent sources of the Ministry of Foreign Affairs reiterate at every opportunity that one should not expect measures similar to those given in 2020 and 2021. This is because the conditions have changed completely. In the previous two years, the branches, which were strengthened without restrictions, were closed by state order. Now like, the economy is running normally even with restrictions. Restrictions also affect a relatively small part of the real thing.

The financial staff has in mind that despite the continuation of the validity of the total escape clause and for this year it knows that the biggest part of the fiscal adjustment – after the coronavirus crisis – should be done this year. This is given that from 2023, when the fiscal rules will be restored, Greece should be able to achieve the goals that will be set without having to proceed with restrictive measures.