Large companies are outraged by the desire to exclude them from the corporate aid plan: the victims are not big Business

Mykolas Majauskas, the new president of the Seimas Budget and Finance Committee (BFK), examined this Wednesday the support provided to companies already affected by the second quarantine, emphasizing that currently helping companies should be a priority for the country.

The government is expected to approve a business support plan on Wednesday afternoon. During the second quarantine, the state will focus on two relief measures: business subsidies and soft loans. It is currently estimated that these two measures will require around 180 million euros. euros.

Although initially it was announced that companies that met two criteria would be eligible: turnover fell by 30% between March and the end of October, and in the sector to which the company belongs, there are around 40% of these companies affected, it has been decided to limit the first criterion to.

According to the Deputy Minister of Economy and Innovation, Ekaterina Rojaka, the ministry decided to abandon the second criterion because the calculation becomes too complicated and does not reveal the real situation.

He criticized the desire to eliminate big business

The subsidy is expected to depend on the Personal Income Tax (PIT) paid by the company last year, and speaking at the Seimas BFK meeting, the Deputy Minister of Economy and Innovation also revealed more concrete figures.

Asked by the president of the BFK M.Majauskas if the funds provided will be sufficient for the new measures, J.Rojaka revealed that the Government has decided to eliminate large companies from the beneficiaries: those with more than 250 employees or more than 50 million . turnover in euros.

In addition, according to her, there is consensus in the Cabinet of Ministers that the subsidy should reach 25%. GPM paid last year.

“There is a general consensus that large companies can be eliminated due to lack of financing. If the funding were higher, there would be no need to highlight large companies, which also pay the GPM and face difficulties,” said the deputy minister.

There is a general consensus that large companies can be eliminated for lack of financing, said the deputy minister.

Hearing this, the leaders of the business associations did not hide their frustration.

Andrius Romanovskis, president of the Lithuanian Business Confederation, emphasized that currently the subsidy is the most important tool for business, and so far it has been said that all companies will be able to apply for it. In addition, greater support is being negotiated.

“Those figures are 25 percent. The level of support from the GPM is two times less than what was said in the ministry. 50 percent spoke. Size. In addition, we had agreed with the ministry that all companies would be supported , whether micro or large. And now we hear that the government wants to eliminate large companies with 250 employees from the subsidy scheme, “A. Romanovskis was surprised.

“The victims have no size, whether they are victims or not.”

The victims have no size, whether they are victims or not, he added.

Meanwhile, Evalda Šiškauskienė, president of the Lithuanian Hotel and Restaurant Association, and Dalia Matukienė, president of the Council of Small and Medium-sized Enterprises, expressed their disappointment at the amount of subsidies: 25 percent. of the GPM paid last year.

“We would also disagree with the elimination of large companies. For example, if a restaurant chain joins 60 restaurants, it has more than 250 employees. In a sector where 42 thousand. employees work, I would eliminate this criterion, ”said E.Šiškauskienė.

He also mentioned other measures that are necessary for companies: deferral of STI and Sodra contributions for 5 years, 100 percent. compensation for wages during downtime, coupons for doctors and educators and others.

“But what’s hot is the subsidies, because the heating season has started and it’s especially bad for business,” he emphasized.

And the president of the Lithuanian Industrial Confederation, Vidmantas Janulevičius, recalled that, as during the 2008-2009 crisis, now medium and large industrial companies are the engine of the economy and attract the vast majority of companies. .

“If December is not dangerous in terms of morbidity, we will have up to 1 percent export growth,” said the industry representative.

However, he stressed that the situation of the large companies that save the economy must be evaluated individually.

“It is necessary to be prepared to work with a scalpel; there may be some that are not included in any aid package, because they have more than 250 employees and 50 million. Turnover, although it is the segment that is pushing the economy up”, noted V. Janulevičius, when proposing to consider a reserve fund for these types of companies.

It is true that there is an aid fund for large companies in Lithuania, which acquires shares in the companies concerned. However, according to V. Janulevičius, this fund, which has accumulated 100 million. 300 million euros in public money and attracted 300 million euros. private funds would only be used when there is no other option.

More funds may be required

The ministry predicts that the second aid package would require about 180 million. 150 million euros are foreseen for grants. 30 million euros for loans. euros. It is estimated that about 60 thousand. national companies and some 500 companies would receive soft loans.

“Depending on the duration of the quarantine, the need for businesses facing a greater drop in turnover may be greater”, J. Rojaka does not rule out the possibility that these funds are not sufficient.

The deputy minister said the ministry plans to hand over all support material to the government on Wednesday and will wait for the green light.

“If approved, these measures should be included in next year’s budget, as no additional measures have yet been assigned. But given the quarantine and current funds, the need for subsidies and soft loans may be greater,” said the deputy minister. .

It is being considered that soft loans could be made directly to Invega, and that financial and assistance intermediaries could be used if it were necessary to increase this financing. During the first wave of the pandemic, 3.5 thousand. 200 million companies were distributed. Soft loans in EUR.

M. Majauskas asked if it would not be necessary to narrow the circle of measures, but rather to increase its financing, but in the opinion of Vice Minister J. Rojama, all companies have very different needs, so “there must be a certain range.”

V. Janulevičius, President of the Lithuanian Confederation of Industrialists, also shared this view.

“Unfortunately, our economy is segmented, diverse and we cannot say that we will solve all problems with a single sword. There are micro, medium and large companies. Until now, there has been balanced support for almost everyone, because you have to work with a scalpel: there are sectors that don’t work like hotels, tour operators, catering. There are sectors where billing is well managed and billing is growing, there are sectors where it is established kovidui it is difficult to survive, ”said V. Janulevičius.

It will save 150 million. euros

In addition to the new measures, which will take effect next year, Invega is currently distributing funds under a series of measures: some will expire at the end of the year, others extended until the end of next year.

During the BFK meeting, Kęstutis Motiejūnas, Director of Invega, stated that the value of all Invega measures is close to 1.5 billion. 900 million euros. euros combat measures, it is planned to use 580 million euros by the end of the year. euros.

K. Motiejūnas anticipates that some 152 million of the measures intended to support businesses affected by the pandemic will remain unused. euros.

“That money can be used for second wave measures in one form or another,” said Invega’s chief executive.