€1.8 billion package to safeguard business - PM Abela

Prime Minister Robert Abela yesterday announced a €1.8 billion package to aid business in the wake of the Coronavirus spread.

Abela said that the aim is to sustain business at a time of crisis. The PM noted that the aim is for the measures to be sustainable, and were possible because the country did so well in the previous years from an economic point of view.

One of the measures is a €350 euro payment the government will be giving to employees who had to go into quarantine because of the virus. The government also announced that it will be shouldering between one and three days of salary per week to people working for industries that have been harshly hit, in different ways, by the Coronavirus crisis.

Abela said that he was not going to order a lockdown; the situation is still under control and there is no need to panic.

The priority at this stage remains the health sector but the government understands that the situation has had a negative impact on business. "We are offering an ambitious package aimed to help business and families during this period of uncertainty and guarantee stability," Abela noted.

“We are aiming to protect business without making distinctions. The plan is to overcome this situation with the least repercussions for the economy to kickstart again as soon as the crisis is over.”

Finance Minister Edward Scicluna said that this will entail €700 million in tax deferrals and €900 million in loan guarantees. Local banks can accept all requests for a moratorium of up to three months on personal and business loans.

There are up to 12,000 families with children where both parents work in the private sector. If neither parent can telework, the government will fund an additional two months of leave for one of the parents. This measure is expected to cost around €16 million.

Scicluna announced a €210 million injection to assist the economy and €35 million to health authorities to fight Covid-19. This will be used to buy beds, protective clothing, ventilators and other necessary equipment. There is no capping, Scicluna said. Whatever the health sector needs, the government will provide.

Economy Minister Silvio Schembri revealed that for businesses who suffered a complete suspension of operations, the government will pay for 2 out of every 5 days of work lost.

Self-employed who have had to shut down operations completely will receive two days’ worth of revenue every week, capped at €800 a month. Those who have employees will receive three days’ worth.

Businesses who have experienced a decrease in trade of at least 25% will be given the equivalent of one day's work a week, capped at €800 per month. The same applies for self-employed who experienced a decrease of 25%. In the case of self-employed who have employees, the government will cover two days a week.

There will be an unemployment benefit of €800 a month for those who lost their employment as at 8 March. Disabled persons who cannot work from home will also get a benefit of €800 a month.

Those whose employment was terminated but who did not benefit from the rent subsidy will now be eligible for it.

Schembri noted that this might not be the last package to be provided. If the circumstances change, the government is ready to revise its position and be able to help more.

During the conference, Schembri also announced that Malta will no longer accept applications for work from third-country nationals "with immediate effect".