Covid-19: How governments are trying to avoid financial ruin

Many people and are fearing financial ruin as the Covid-19 crisis has enforced global lockdowns.

Governments across the world are now expected to act — but what can governments do?

Here we examine four countries.

  1. United Kingdom

The UK government has announced a £398 billion aid package to save businesses from financial ruin. Chancellor Rishi Sunak said in a press conference that the government “will do whatever it takes”. And “that means any businesses that needs access to cash, will be able to access a government – backed loan”.   Small businesses are able to get a loan up to £25,000. Furthermore, mortgage providers will be able to give a three – month holiday for those in needs.

  •  Germany 

Germany has a similar aid package as the UK. The German government released at the end of March the “Corona Soforthilfe Programm”, where freelancers and people with small businesses can apply for money. How much someone can get is recorded in a list.

A self- employed person, with fewer than 10 employees can get up to 9.000 Euros. But this money is only for costs of the company that have to be paid, such as rent and not for their own living costs. Also excluded are the wages for the employees.You can apply easily on the internet and get the money in the next five working days.

  • Russia

At the beginning of April, the Russian government announced that every working person will have paid holiday for the rest of April. This measure should first contain the virus and secondly help the people to pay for their living.

From May the government will have to take other measures. Companies will not have to pay high taxes anymore. In addition, it should be possible to get better and higher loans. The travel sector for example, is exempted from payments into funds and other contributions for the rest of the year

  • Netherlands

The Dutch government has released a temporary measure for people who are struggling finically at the moment.

The “Temporary Emergency Bridging Measure for  Sustained Employment” should help to pay peoples wages during the crisis. You can use this programme for three months and extend it for another three months, if needed.

How much the government is paying is also listed and depends on your turnover. If you have a 100% turnover, the government will fully pay for the employees. If you have a turnover from 50%, you will only get a 45% compensation. On the other hand, the help for people with “short-timed work” is now cancelled. According to experts, the Dutch government is about to pay 90% of employees’ wages.

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