Britain allocates £ 300 billion to support business because of the coronavirus
The British government has decided to allocate 330 billion pounds sterling to support businesses that have suffered from the coronavirus outbreak, said Finance Minister Rishi Sunak.
This amount is called unprecedented: it is about 15% of British GDP and more than a third of the Kingdom's budget.
According to Sunak, help on this scale would have been unthinkable weeks ago. But the coronavirus is "an emergency situation for both public health and the economy," so "the government will support any business, big or small," the minister assured.
If that money is not enough, the government, according to Rishi Sunak, will be able to provide additional financial assistance.
"Any entrepreneur who will need money to pay rent, salaries and other expenses will be able to get a loan on good conditions," Rishi Sunak said.
The government is preparing, among other things, to support airlines and airports that have been most severely affected by quarantine and border closures in various countries.
Pubs, clubs and theatres have been equally affected by the coronavirus. The government will give them one-off grants of up to £25,000 so they can survive this difficult time and not go bankrupt.
Other small businesses can count on one-time grants of up to £10,000.
The business is also expected to be exempt from municipal tax for the time being.
Homeowners experiencing financial difficulties due to the coronavirus have been allowed three months without mortgage payments by the government.
What about supporting businesses in other countries?
In Italy, the government promised to inject 340 billion euros ($374 billion) of public money into the country's economy.
In Spain, Prime Minister Pedro Sanchez said that his government will spend 200 billion euros ($220 billion) on business support. This is the largest public aid in the economy since the fall of the Francoist regime and the establishment of democracy. " The government will take the shock on itself," Sanchez said.
The French government has announced it will allocate €500 billion to support the economy. .
In addition, Paris will allocate another 45 billion. Another 2 billion will be allocated specifically to support restaurants and the tourism sector.
German Chancellor Angela Merkel announced the allocation of 550 billion euros ( 605 billion $) for government loans.
US President Donald Trump is expected to ask the US Congress to allocate $850 billion $ for business support.
The assistance that Japan is going to provide is $193 billion.