From budget revival to lower interest rates and targeted actions, governments and central banks around the world are freeing billions, to support a global economy crippled by the emerging epidemic of the Coronavirus. ...
Unlike its US counterpart, the Federal Reserve, the European Central Bank kept interest rates unchanged, and chose another path to be applied in stages. On March 12, the minimum bank reserves were eased and encouraged to continue lending to SMEs to avoid a wave of bankruptcies.
According to the "French", the European Central Bank provided more than one hundred billion euros to banks, the first of 13 refinancing operations scheduled until mid-June.
The European Central Bank has finally achieved what the European markets and governments demand, as it announced in an extraordinary video conference a 750 billion euro emergency plan for the purchase of public and private debt, which will be implemented until the end of the year, in the hope of alleviating the burdens of banks and pushing them to continue lending or relaunching it.
On the other hand, the European Central Bank wants to regulate its movements in the market "flexibly", which suggests that it will focus on some sovereign shares that face great difficulties to calm tensions over their debt, such as Italy.
The Federal Reserve, which carries out the functions of the central bank, offers loans to cars and real estate and loans to companies, and has resorted to a facility to finance credits called the commercial document "Commercial Paper" and was used for the last time during the financial crisis in 2008, and last Sunday it cut rates suddenly to Zero, a level not registered since December 2008.
On the other hand, the "Federal Reserve" and the European Central Bank and the central banks of Japan, Britain, Canada and Switzerland eased the conditions under which foreign currencies are exchanged in order to secure adequate financing for the dollar markets.
On the government side, US President Donald Trump yesterday ratified the urgent measures package law that aims to limit the repercussions of the spread of "Corona" by 100 billion dollars, including financing sick, family and paid medical holidays, providing food and medical assistance to those affected by the emerging corona virus, and expanding the scope of Unemployment insurance and free virus detection analysis funding, and the law includes requiring employers to provide additional protection for health care workers.
For his part, US Treasury Secretary Stephen Mnuchin stressed that the government "has no problem issuing more debt securities, to stop economic damage", and Mnuchin predicted that once the stimulus law is passed, American companies and businesses will be able to obtain credit "and we will see stability." The last such cut is from January 6, when Beijing cut the mandatory reserve rate by half a point and pumped nearly 100 billion euros into the economy.
Italy - the country most affected by the Coruna virus in the European Union, has announced the allocation of 25 billion euros to combat the Corona epidemic, and the government hopes that these measures will raise 340 billion euros of liquidity.
Rome will use its portfolio to help Italian lenders, in particular, by suspending the payment of certain real estate and bank loans.
In France, the government announced the easing, postponement or cancellation of 32 billion euros in fees for the month of March alone, and this amount constitutes the largest part of the 45 billion euros of an "immediate" plan announced by French Minister of Economy Bruno Lemerre.
The government has also moved the partial unemployment measures and set up a solidarity fund of nearly two billion euros, and small businesses, very small companies, and small contractors who are facing difficulties will benefit from the suspension of the payment of their bills for water, gas, electricity and rent, French President Emmanuel Macron announced.
The state will guarantee the loans provided by banks to companies affected by the Corona virus crisis in the amount of 300 billion euros, and did not exclude the provision of direct support to some companies through interference in its capital.
For its part, Germany announced the largest aid plan for companies since the Second World War, through "borderless" loans with a value of no less than 550 billion euros at the beginning.
Since March 9, it announced a package of measures to support the economy, including companies facing difficulties facilitating the resort to partial unemployment for their employees, providing loans in the event of financial difficulties, and the release of an additional amount of 12.8 billion euros over four years for the transport sector, housing construction and the digital sector in particular.
The government also announced measures to reduce taxes and softer rules for paying off loans.
And Spain’s Prime Minister Pedro Sanchez announced that the Spanish state would guarantee 100 billion euros in loans to companies.
Among other measures, the government will facilitate the resort to temporary suspension of the job "a form of partial unemployment that allows the employee to return to his institution after that," and independent workers will be able to obtain unemployment compensation more easily.
It will allocate 600 million euros to fund aid for the most vulnerable of the elderly and families in need of Internet communications. "We will release two hundred billion euros in total," he said.
The British government promised to support the economy "at any cost," and announced a state guarantee of corporate loans worth up to 330 billion pounds and 20 billion pounds in aid.
A week earlier, the UK announced a budget support of 30 billion pounds and a related reduction of "from 0.75 to 0.25 per cent", unexpectedly, the Bank of England interest rates.
It will allocate 12 billion pounds for a direct response to the immediate consequences of the Coronavirus. It will help seven billion independent workers and small and medium-sized companies most at risk, as well as five billion for the health sector, in addition to this 18 billion for other measures, especially public services or infrastructure, to stimulate the entire economy.
Canadian Prime Minister Justin Trudeau announced a new plan worth 27 billion Canadian dollars (17 billion euros) of immediate aid