With the coronavirus pandemic spreading its grip globally, various economies have been hit badly.
Leaders and policymakers of various countries are brainstorming on how to reinforce the markets as well as economies amid the coronavirus outbreak.
Here’s a look at the measures taken by some of the world’s biggest economies:
Germany: Kreditanstalt für Wiederaufbau (KfW), Germany’s state development bank, has planned to lend over $610 billion to companies. The decision has been taken in order to help the companies survive and keep the job market thriving. Discussions on providing financial support to companies that have been forced to shut down are also underway. Meanwhile, the government has decided to boost investment by €3.1 billion per year between 2021 & 2024.
Italy: The country has announced the provision of €25-billion for improving the state of the economy. Lenders will be offering debt moratorium to households and small firms and payments on mortgages will be suspended too.
France: The government of Frace has decided to compensate for the virus-related salary losses of 99% of the workers in the country. Payments towards some taxes and social charges may also be suspended by the companies.
Austria: A $4.4-billion “corona crisis fund” has been announced by the government to offer some relief to its people. Discussions of cutting down working hours and deferring taxes are also underway.
Sweden: The Swedish central bank has decided to aid companies by lending over $52 billion through various banks.
European Union: The EU has announced an investment of €37-billion to help stabilize the economy. The European Union also ensured the provision of €8-billion in loans, state aid, and flexibility on budget deficits to its member states.
The European Central Bank has also come up with the plan to provide loans at – 0.75%, below the -0.5% deposit rate. The ECB has also planned to increase bond purchases by €120 billion this year.
Britain: Soon after the Bank of England slashed interest rates, Britain launched a £30-billion plan to reinforce the economy.
Switzerland: The country has planned to provide a $10.5 billion aid to small businesses and freelancers who have been affected due to the ban on cultural events and the shutdown of certain businesses.
China: For the second time this year, China has reduced the amount that banks need to store as reserves which now allows them to release over $79 billion. The government has also appealed to the banks to provide loans at cheap rates.
Japan: The country has announced the second installment of about $4 billion to aid the companies and people affected by the virus outbreak. Their major focus this time is small and medium-sized firms.
US: President Donald Trump signed an $8.3-billion emergency spending bill that will be used in developing vaccines and combating the novel coronavirus outbreak. Additional liquidity of more than $200 billion will be provided by the Treasury Department and will postpone tax payments without interest or penalties for certain individuals and businesses. Firms hit by the outbreak will also receive capital and liquidity from The Small Business Administration.
South Korea: The country has announced the provision of $9.8-billion for ensuring economic stability.