Market cash boost of €3.5 bln
The government will activate support measures of more than 3.5 billion euros in the rest of the year, aimed at the transition to the post-pandemic period with the least possible damage to the economy and with the prospect of a sustainable reopening.
The tax breaks Prime Minister Kyriakos Mitsotakis announced last week, securing additional liquidity of €900 million for enterprises through the reduction of the corporate income tax deposit, are in the same direction. “Our philosophy is to gradually withdraw the support measures and help with tax breaks,” notes a Finance Ministry source.
The focus of attention is now on the economic restart: The main challenge is to avoid any more surges in the pandemic, and to have a better tourism season than in 2020.
Therefore, as the economy slowly reopens – though not for everyone – a series of measures will gradually apply. They include grants, credit for the payment of corporate dues, subsidies toward loan tranches and collateral for loans. The latest to be announced, also by the prime minister, are a special package for tourism and for gyms and play centers.
Finance Ministry officials say the cash flow to hit the market will be considerable, starting with the seventh phase of the cheap state loans program that will disburse €1 billion. The subsequent program for restarting food service will dish out €330 million in May and June; along with the packages for gyms and play centers and for tourism – expected to start in June – the Development Ministry measures add up to some €750 million, according to Finance Ministry calculations.
Another €800 million will go toward enterprises from the European Union regional subsidies. What is more, the program to subsidize fixed corporate expenditure will constitute tax credits of €500 million by the end of the year, also starting from next month.
The special-purpose compensation for the companies closed in April will come to €130 million, while the Hellenic Development Bank’s new guarantee plan will issue credit of €450 to small companies and loan tranche subsidies are expected to reach €300 million.
