Governments in the region keep introducing economic aid packages. Property Forum’s daily summary looks at the measures taken to ease the impact of the COVID-19 crisis on households and businesses.
Economic stimulus worth 9% of GDP in Poland
The Polish Government is introducing an economic aid package to rescue companies and employees affected by the coronavirus crisis. The stimulus package is worth €46 billion (PLN 212 billion), which is roughly equivalent to 9% of GDP of the country. The package will support employees unable to work by covering up to 40% of their salaries as well as entrepreneurs by providing state guarantees for businesses. Poland's central bank has also cut its benchmark interest 50 basis points and announced liquidity measures to help businesses.
Loan guarantees for businesses in Romania
The measures announced by the Romanian Government include credit guarantees for companies for investments and securing the payment of workers sent to technical unemployment due to suspensions caused by the coronavirus. The Romanian central bank has cut its monetary policy rate to 2% from 2.5%, effective as of 23 March.
Interest-free loans in the Czech Republic
The government of the Czech Republic has set aside €36 million (CZK 1 billion) in interest-free loans for businesses affected by the coronavirus outbreak. At the same time, the Czech National Bank announced to cut key interest rates by 50 basis points to 1.75 percent to mitigate the economic impact of the coronavirus.
Austria’s government sets aside €4 billion aid package
Austria has earmarked €4 billion to combat the economic fallout of the coronavirus pandemic. The package will include loan guarantees and short-term credits for enterprises.
