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The conservative Mykolas Majauskas asked the Finance Minister on Thursday about the support for companies, which will suffer losses during the second quarantine.
“The budget for 2021, in my opinion, is less than 100 million. for the amortization of the consequences of COVID-19, for companies, employees, employers. Given that the quarantine has been announced and the decisions made after your budget, do you not consider it necessary to increase the estimated costs for the amortization of the consequences of COVID-19 by 2021? “, I ask.
Photo by Sigismund Gedvila / 15min / Mykolas Majauskas
V.Šapoka assured that next year’s budget, in response to COVID-19, including funds for business reorientation and employee training, foresees more than 600 million. euros.
“The 100 million mentioned. Is the coverage for the twelfth month of this year,” he noted.
The minister said that the principles that were followed to help companies during the first phase of the COVID-19 pandemic and will now be different. Support is now said to be limited to very specific areas.
“Initially there are, and many countries are applying, horizontal principles to buy more or less time for everyone and avoid the painful consequences of a sharp rise in unemployment, a sharp slowdown in the economy.
When the second wave arrives, we must concentrate more. As a major economic shock has been averted, we must focus on supporting those areas that are directly affected and affected by the restrictions imposed by the Government, ”said V. Šapoka.
He warned that in the coming years, with the new waves of COVID-19 and the introduction of operating restrictions, the deficit business will have to deal with itself.
“In the future, and next year, we need to help reorient companies and invest in economic transformation. Because how many more pandemic waves there will be, no one will really answer.
If we respond to those waves in the same order and to the same extent when it comes to business support, the situation will spiral out of control. We have to clearly adhere to the planned medium-term debt consolidation plan. Next year, in most cases, companies will have to operate on their own, ”said V. Šapoka.
If we react to these waves in the same order and to the same extent, the situation will spiral out of control.
The Vice Minister of Economy, Jekaterina Rojaka, previously identified two additional measures for companies affected by the second wave of COVID-19. These are grants and soft loans.
According to the SNB, it is proposed that companies whose activities are restricted will benefit from a reduction in turnover of more than 30%, with a reduction of 40%. companies throughout the sector.
In some cases, individual criteria are also considered.
The subsidy scheme, which should receive up to 80 million. The STI is expected to present calculations, send calls to companies, and the money will come to them through the Ministry of Economy and Innovation and the National Center for General Functions.
The second quarantine will take effect at night from Friday to Saturday. It suspends the activities of public catering establishments, entertainment venues, health service centers that provide recreational services, as well as visits to cultural, leisure, entertainment and sports establishments.
After the introduction of the first quarantine on COVID-19 in March, the Seimas increased the Government’s net borrowing limit from 900 million. up to 5.4 billion. to allow the government to compensate for declining revenues and reduce the impact of the crisis on the economy.
The Finance Ministry has previously stated that the actual need for borrowing will depend on both the approved incremental costs and the negative consequences of COVID-19 on public finances and cash flows.
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