Here’s how much money countries have pledged for virus relief

Some governments have allocated new money for cash handouts and medical care.
Image: Bartek Sadowski/Bloomberg

Some $1.14 trillion in fiscal support has been pledged or is under consideration as governments around the world rush to contain the coronavirus and shore up financial markets and businesses.

Pledges by Germany and France to guarantee hundreds of billions in bank loans boosted the global tally. France will guarantee up to 300 billion euros ($333 billion) of bank loans to prop up businesses most hurt from the virus outbreak, while Germany earlier said as much as 550 billion euros was available from state bank KfW.

Some governments have allocated new money for cash handouts and medical care, while several are planning targeted measures like tax breaks and loan support. Bank guarantees have started to take up an increasing share of the aid.

Here’s a look at what governments have pledged so far, generally in order of their announcements:

  • The economy most severely affected by the outbreak, China has kept its stimulus response targeted and relatively modest, with no large-scale spending plans announced. Monetary authorities have injected liquidity into the economy in several operations to support banks
  • Prime Minister Shinzo Abe’s administration rolled out a second package to tackle virus effects, bringing the total allocation since last month to 2.03 trillion yen ($19 billion)
  • The latest measures include 1.1 trillion yen in loan support and 430.8 billion yen in aid for medical professionals and those affected by school closures. That adds to 500 billion yen allocated last month in low-cost loans to companies affected by the virus
South Korea
  • 11.7 trillion won ($9.4 billion) was allocated in a special budget to aid medical response, businesses and households; Yonhap News reports officials are discussing expanding the amount
  • Tax breaks, rent subsidies announced Feb. 28
  • Fiscal stimulus worth A$17.6 billion ($10.7 billion) includes A$1.3 billion to safeguard jobs of 120,000 apprentices; one-time cash payments to welfare recipients and lower-income households; wage subsidies for small- and medium-sized firms
  • A$1 billion fund set up to help tourism operators and some China-exposed exporters
  • A second support package, which includes easing of import restrictions and cuts in import taxes on select commodities, takes Indonesia’s virus-related stimulus to 33.22 trillion rupiah ($2.19 billion)
  • The first package unveiled last month includes fiscal incentives, grants to local governments and a boost to social security funds
  • Government said its package of stimulus measures will inject about 400 billion baht ($12.4 billion) into the economy to counter virus effects. It includes 180 billion baht of concessionary loans, as well as tax cuts
  • That would add to just-passed budget that’s expected to spur 640 billion baht in investment
  • Policy makers have signaled willingness to tap national reserves for the first time in more than a decade to fund a potential second stimulus package
  • S$6.4 billion ($4.5 billion) allocated in annual budget toward virus response, support for businesses and consumers. Of that, S$800 million — most of which will go to the Health Ministry — is dedicated to combating the virus
Hong Kong
  • HK$120 billion ($15.5 billion) relief package announced in annual budget
  • Includes HK$10,000 payment to each permanent resident 18 years or older
  • Prime Minister Muhyiddin Yassin said a second batch of measures will include compensation for workers on unpaid leave, acceleration of cash handouts to low-income residents, electricity discounts for businesses
  • 20 billion ringgit ($4.6 billion) allocated in a special stimulus package under previous government; includes aid for businesses, especially tourism, lower minimum pension contributions, tax payment extensions and infrastructure upgrades
  • Government has proposed a package of measures such as increased health-care spending and postponed tax deadlines
  • The cabinet pledged to spend 25 billion euros ($27.8 billion) on virus-related stimulus; includes aid for workers facing temporary layoffs and funding for affected industries
  • Economic officials have said Germany is ready to unleash major stimulus, with as much as 550 billion euros ($612 billion) available in lending from German state bank KfW
  • German Chancellor Angela Merkel’s administration is prepared to ditch a long-standing balanced-budget policy in order to respond to outbreak
  • Government took steps to assist businesses affected by virus fallout, including loosening rules for short-term work compensation and providing tax breaks to firms
  • A package of measures negotiated by House Democrats and White House officials is set for a Senate vote. Among the steps are coverage for virus testing, greater unemployment and food assistance, and tens of billions of dollars in aid to states
  • A $7.8 billion emergency spending bill to fund response to the outbreak was signed March 6
  • Prime Minister Justin Trudeau announced C$1.1 billion ($784 million) in new financial measures, including faster unemployment insurance benefits for those self-quarantined, more funding for virus research, financial aid to provinces for medical supplies
  • Trudeau said he’s prepared to use federal financing agencies for further stimulus as needed
  • A 12 billion-pound ($14.7 billion) virus package was announced as part of a 30 billion-pound budget, including 5 billion pounds for a National Health Service emergency response fund, statutory sick pay for those self-quarantined, and aid for businesses
  • The fiscal pledge came shortly after a surprise interest-rate cut by the Bank of England
  • President Emmanuel Macron said France will guarantee up to 300 billion euros ($333 billion) of bank loans to companies
  • Government will also allow companies to delay paying taxes and social security contributions, and provide support to help them delay loan payments
  • Government has pledged 10 billion francs ($10.5 billion) in support, including funds to prevent layoffs, and emergency loan assistance especially for small- and medium-sized firms
Saudi Arabia
  • Unveiled a package worth 50 billion riyals ($13.3 billion), including 13.2 billion riyals in loans to small and medium-sized enterprises, and a 6 billion-riyal loan guarantee program
United Arab Emirates
  • 100-billion dirham ($27.2 billion) package rolled out, including 50 billion dirhams in aid for banks in the country through collateralized, zero-interest loans
  • Government said it will allocate 100 billion pounds ($6.4 billion) to combat effects of virus
New Zealand
  • The government unveiled a NZ$12.1 billion ($7.3 billion) package including increases for beneficiary payments, wage subsidies for affected businesses
  • The stimulus equates to 4% of GDP

© 2020 Bloomberg


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