Ireland launches 6.5 billion euro coronavirus business package

FILE PHOTO: An empty street with construction cranes is seen as the spread of the coronavirus disease (COVID-19) continues, in Dublin, Ireland, April 25, 2020. Picture taken April 25, 2020. /REUTERS.

Ireland will allow firms impacted by the coronavirus crisis to warehouse tax liabilities for 12 months, offering a“lifeline”as part of an additional package of business supports that could reach 6.5 billion euros ($7.14 billion), the government announced on Saturday.

Commercial rates will also be written off for three months, a 2 billion euro credit guarantee scheme introduced for small and medium sized businesses and Ireland's sovereign wealth fund mandated to invest 2 billion euros directly into bigger firms, Finance Minister Paschal Donohoe said in a statement.

After a lockdown to stop the spread of COVID-19, Ireland laid out a roadmap on Friday for a gradual re-opening of the economy that could allow building sites and some retailers to reopen in two weeks, with restaurants following in June, hotels in July and finally pubs in August.

The government concentrated its initial 8 billion euro fiscal response on increased jobless payments and wage subsidies for workers, with 1 billion euros of liquidity supports offered to reeling firms.

The much larger package on Saturday also included a 10,000 euro restart grant for micro and small businesses. Ireland's main business lobby, IBEC, welcomed the measures as an important further step in addressing the cash-flow crisis facing many.

Source(s): Reuters