By Tasos Dasopoulos
Following the coverage of the employees, the Ministry of Finance is preparing a second package of measures to strengthen the companies, which are again affected, seven months after the end of the second lockdown of the economy, by the new restrictive measures against the coronavirus.
It goes without saying that the extent and duration of this second support package will depend on the duration and intensity of the restrictive measures imposed in order to limit the extension of the Omicron mutation.
If the restrictions last until the end of January, then the additional measures will concern the extension of payment of tax and insurance obligations, old (ie those that are already in regulation), but also those with deadlines that expire until the end of January with a similar configuration. , if the duration of the restrictions is longer.
The search, at this stage, is found in measures to increase the liquidity of companies, mainly catering, which will see their turnover decrease significantly during the holidays. The difference compared to the same period of the end of 2020 and the beginning of 2021 is that for this year things are a little worse for companies affected by the restrictions.
At this point in time, these companies are not only seeing their turnover decline due to the pandemic but, unlike last year, when they remained closed by government order, they are in operation – and therefore have to deal with operating costs.
In fact, especially the restaurant made increased expenses for the recruitment of staff and raw materials, precisely because the festive season was approaching. In addition, a negative element for this year is that the affected companies have to deal with the increased energy costs, like all other companies.
Immediate reinforcement is also being considered
In this regard, a direct aid program is being considered, to which, of course, the EU Competition Commission must also agree.
The repayable advance measure is very difficult to apply again, as the program is closed and now those who have been supported by it will have to start repaying it in June, with a generous discount of up to 75%. A further haircut of the repayable part of the aid is possible, but does not address the immediate liquidity problem of the sectors currently affected.
In any case, any immediate aid will be finalized in February or March, if the pandemic restrictions continue until then and there is evidence from the affected sectors that leads to the conclusion that the reduction in turnover was significant.
The Ministry of Finance clarifies that this year’s period is very different from the corresponding period a year ago, as despite the restrictions that now affect, at times, mainly the catering sector, the economy is fully operational.
Any aid decided should be balanced in order to cover the workers and at the same time not to have padlocks in the area, which was hit more than others in the previous months of the pandemic.
.
Source From: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
