Portugal announces 9.2 billion euros of coronavirus aid

Portugal's government announced on Wednesday a 9.2 billion-euro package to support workers and provide liquidity for companies affected by the coronavirus outbreak. The package, presented by Finance Minister Mario Centeno and Economy minister Pedro Siza Vieira, includes 5.2 billion in fiscal stimulus, 3 billion in state-backed credit guarantees and 1 billion related to social security payments.

"Now is the time to combat the pandemic, but also to keep our economy functioning," Centeno said. Portugal's export-oriented, tourism-dependent economy is feeling the effects of the coronavirus slowdown, as holidaymakers cancel their bookings and governments impose stringent travel restrictions.

Just over half of the 3 billion euros in credit lines is earmarked for companies working in tourism, hotels, and restaurants. The other half goes to industries like textiles, clothing, and wood. Around a third is set aside for micro and small enterprises. An additional 5.2 billion euros are fiscal measures such as flexible payment schedules for tax payments and social contributions in the second trimester, and a reduction of social security contributions between March and May.

Portugal has reported 448 confirmed cases of coronavirus, far below neighbouring Spain's 11,178. Commercial centers, offices, and factories have closed or reduced services after the government urged people to self-isolate and work from home. President Marcelo Rebelo de Sousa is due to announce later on Wednesday whether the country will go into a state of emergency, expected to reduce people's movements nationwide.

Speaking alongside Centeno, Economy Minister Siza Vieira said it was more important than ever for workers to carry on despite the change in circumstances. "This is like a war. And a war needs soldiers. Our soldiers are our health workers, but the people ensuring we have all we need are also the soldiers of this war," Siza Vieira said.

 

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