Covid-19: Government Extends Crown Support to Businesses



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At the same time that the spread of the infection has gathered momentum, several of the government’s crisis measures for businesses are about to expire. Now it is announced that various support measures will be extended.

– Many companies are seriously injured after struggling for several months. We know that it will be difficult for many companies when the crisis continues, says Magdalena Andersson.

The government and cooperation parties C and L agree, among other things, to extend support for short-term layoffs until June 30 next year. At the same time, both support for adjustment and support for individual traders are extended by three months.

According to the finance minister, it is too early to say whether further measures will be necessary to support Swedish companies.

– It depends on how the spread of the infection develops and how the economic development is. That is why it is important that we have a high level of preparation, says Magdalena Andersson.

Minister of Finance Magdalena Andersson (S).

Minister of Finance Magdalena Andersson (S).

Photo: Anders Wiklund / TT

Although some industries are significantly more affected than others, support will remain general, that is, open for everyone to apply.

– But you only receive financial support if you are financially affected. The downside of supporting targeted industries is that we have demarcation issues, for example between the arena that can only accommodate 50 people and the outdoor hotel that doesn’t welcome guests due to audience restrictions, says Magdalena Andersson.

Monday’s announcement also means that companies will have a greater opportunity to defer paying taxes. According to the Minister of Finance, this has proven to be an effective way of providing companies with increased liquidity. At the same time, it means that the state has a higher credit risk.

– The risk of credit losses increases when we expand this. But when we see that the spread of the infection is now increasing, it seems sensible to extend this possibility so that we don’t have a widespread wave of bankruptcies when taxes are due, says Magdalena Andersson.

The economic-political of the moderates Spokesperson Elisabeth Svantesson welcomes the government’s expanding support measures.

– It is good and necessary that the government and the supporting parties extend this support. However, I am surprised that they are not taking the opportunity to make the aid more effective, he says.

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