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The Government of the Czech Republic plans to assist businesses affected by coronavirus with up 1 trillion CZK

The Czech Republic will offer direct aid as well as investment guarantees

The Government of the Czech Republic plans to assist businesses affected by coronavirus with up 1 trillion CZK Source: Adobe Stock

Based on analysis of the predicted economic impacts of the COVID19 outbreak, the Czech government is considering offering affected firms up to 1 trillion CZK in aid.

This was specified on the 18.03 at a press conference by Czech PM Andrej Babiš, who outlined that up to 100 billion CZK will go towards direct aid, while the remaining 900 billion CZK will be offered as investment guarantees.

As specified by the minister of industry and trade, Karel Havlíček; “Direct investment aid will most likely include compensation of wages, exemption from levies, financial injections and support for part-time employees. It won’t happen immediately, but this is the rough direction that we would like to proceed in”

Investment guarantees are a commonly used methodology by governments during times of crisis. By acting as a guarantee for corporate loans with commercial banks, firms have assurance that in case of incurred issues, they will be eligible for monetary compensation.

As stipulated by minister Havlíček, the government will support the Czech-Moravian Guarantee and Development Bank (ČMZRB) with a further 10 billion CZK to support firms affected by the Covid19.