The government announces an aid package of 6,500 million euros



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The Minister of Finance, Paschal Donohoe, has announced a series of additional supports for companies affected by Covid-19, worth approximately € 6.5 billion.

Speaking on Saturday after a cabinet meeting, Donohoe announced a waiver of business fees for companies that have been forced to close for three months, beginning March 27. The measure has cost around € 260 million.

Guaranteed loans of up to € 2 billion will also be offered to the most affected SMEs. The loans will range between 10,000 and 1 million euros and will be guaranteed 80 percent by the State. The terms will be between three months and six years, and the interest rates will be significantly below market rates. This occurs amid criticism of existing schemes that are burdensome to access.

Donohoe also plans to legislate to allow Revenue to “store” VAT and payroll tax debt at zero interest rates stemming from the restrictions.

The measures also include a new “Restart Fund”, worth € 250 million, to help micro and small businesses directly through grants.

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