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Such support, according to the minister, could be claimed by tourism, catering establishments, bars, events, entertainment, hotels, the beauty industry, sports, non-food businesses, which do not have the possibility of trading online.
“We already know COVID-19. We know how to track and control it. However, Lithuania was not prepared for the second wave of the pandemic. In the summer and early autumn, the weak institutions did not strengthen, their capacity did not strengthen. That’s why we are where we are until now, in strict karate to which we have given many of our freedoms.
This is happening not only in Lithuania. The fact that a “curfew” was introduced for the first time since World War II in late January this year in the freedom-loving Netherlands speaks volumes.
We know about COVID-19, but new versions of the virus and mutations in the world are beginning to compete with vaccination capabilities. We will get vaccinated this year, but the virus will continue to develop, which means that the vaccine will also have to develop further and we may have to vaccinate more than once, as we do against the flu.
It also signifies our new reality, where testing, masks, and sanitizer will be our companions for years to come. Nor will we do it in education, industry, services, events and travel.
Every liberal soul is also concerned that we cannot do without restrictions on our personal freedoms. Those freedoms that you want to recover from the quarantine process as soon as possible.
# Why do we have to plan for gradual liberalization of business activities? #
The new reality also means that we will not be able to live in quarantine forever and will have to plan an exit. Doctors will always tend to treat the situation with extreme caution, we understand them perfectly. But we have to prepare to live with the virus and return to a life in which covid and the like will always be close to us.
In the day-to-day life of the Ministry of Economy and Innovation, more than anywhere else, we feel a growing tension due in part to the inability of companies to work, to earn and also to a growing shadow. Some entrepreneurs who have started operating in the shadows may not return from there. We do not want a third wave of COVID-19 and we do not propose a full ‘rollout’, but we do propose to participate in order to get the business back in action in the current situation.
To facilitate repayment, we have planned and will present test compensation to companies to the Government tomorrow. It will allow small and medium-sized employers to reimburse the costs of employee preventive testing for at least 3 months. We expect 100,000 employees to benefit from the installation. We have allocated 30 million for this. euros.
# What do we do while the quarantine is still strict? #
When we came to work for the government 7 weeks ago, it was clear that we would not have any traditional 100 day period, nobody would give it to us. Lithuania burned.
In the Ministry of Economy and Innovation, of the existing business support instruments, we only find the Large Business Support Fund, which no one used. There were no subsidies or credit facilities for the little ones. We had to organize them.
We found the administrative capacity and the capacities left by the outgoing government, we did not have time to reform them or hire new people. We had to act immediately and use the tools and powers that the state has.
Thus, already today, small and medium-sized enterprises (SMEs), as well as those with more than 250 employees but that meet other SME criteria (annual income not exceeding 50 million euros, book value of assets not exceeding 43 million euros), are eligible for grants of 150 million euros. euros. You can apply by filling out the application on the STI page. Applications are verified by the Lithuanian Trade Support Agency. Smaller companies can be supported faster, larger companies slower, because the STI has to additionally program their system and the LVPA has to verify it for longer. Support is distributed as of January 20. More than 12 million have already been allocated. received by 5704 companies.
Through Invega, we provide soft loans to companies affected by COVID-19, both small and large. € 30 million has been allocated to this aid measure. euros. Loans have already been approved to 89 companies, to which 4.4 million have been transferred. euros. A further 403 applications are currently being evaluated. By the way, although loan applications for 25 million were received. We know that not all of them will be used immediately; some companies ask for more than the order allows, or something like that. The maximum amount that can be borrowed is 100,000 euros and the loan conditions are extremely favorable: the interest rate ranges between 0.6% and 1.69%. No commercial bank will lend for that much money.
Businesses also receive downtime allowances from Employment Service employees, and the STI provides the opportunity to defer payment of taxes. Large companies are eligible for the Business Support Fund. The state has transferred $ 100 million to the fund and, by issuing bonds, it will add $ 500 million in the spring.
We can already see that companies that have not been affected at all by the quarantine restrictions, or that even provide fictitious data about the victim, are beginning to apply for the grant portfolio. We will not allow such abuse and next week we will start a meeting with colleagues from the STI and the Ministry of Finance to find a way to prevent it.
# What do we reschedule for February? #
Tourism, catering establishments, bars, events, entertainment, hotels, the beauty industry, sports, non-food commerce, which do not have the ability to trade online, are particularly affected by the quarantine.
Thus, the second package of subsidies will be only for those most affected. According to preliminary plans, for those whose turnover was reduced by 60%. and more. But it is still up to the government to decide. A narrower circle of beneficiaries will allow a more generous subsidy to be paid, which we hope will help companies cover at least part of the costs incurred. We allocate 50-70 million for this. euros.
We also provide compensation for the market tax, as well as two new measures that are still unusual for the activities of the Ministry of Economy:
1) I’ve already mentioned the employee’s trial compensation.
2) Subsidy for freelancers – according to certificate of activity or individual company. We will allocate 30 million for this. and the amount of the benefit will be 100%. 2019 GPM paid. The benefit will be a lump sum, in addition to what the Employment Service pays monthly.
Decisions on these measures are due to be made by the government next week, and administrations are already preparing to start implementing them this month.
# Highlight #
The new reality that the pandemic and its negative consequences have brought us will not be easy for us to accept. But despite the changes that the virus has brought to our health, economy and education system, the most important thing will definitely return: we will be able to meet and interact with our loved ones and embrace them.
And this knowledge, I hope, will help us survive this prolonged confusion and uncertainty, “wrote A. Armonaitė.
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