Swiss plan to expand coronavirus aid for hard-hit companies

It decided against reactivating its emergency loan guarantee scheme, which supported nearly 17 billion francs in state-backed credits this year, after deciding the economic effects of the second virus wave so far were not comparable with the first outbreak. Still, it would seek authorisation to create a new loan programme if the situation worsened dramatically.

The Swiss government proposed on Wednesday expanding its hardship support programme for companies particular badly hit by the coronavirus pandemic from 400 million Swiss francs ($439 million) to 1 billion francs.

The government said it will pick up most of the bill for the expanded scheme if parliament approves, paying up to two-thirds of the costs with the remainder being paid for by regional governments. Switzerland's short-time working compensation scheme would be extended, the government said, while sports clubs will receive support in the form of non-repayable grants under the proposals.

The government said it thought its existing package of measures was enough to cushion the economic impact of the pandemic, which has so far claimed 3,385 lives in Switzerland and tiny neighbour Liechtenstein. It decided against reactivating its emergency loan guarantee scheme, which supported nearly 17 billion francs in state-backed credits this year, after deciding the economic effects of the second virus wave so far were not comparable with the first outbreak.

Still, it would seek authorisation to create a new loan programme if the situation worsened dramatically. ($1 = 0.9110 Swiss francs)