COVID-19 – Joint Conference of Minister of Finance and Minister of Labour on the new Support Package

The Minister of Finance and the Minister of Labour held a joint conference today here in Greek, announcing key support measures for those affected by the latest lockdown. Briefly the measures announced are the following:

  1. Employee subsidy scheme (Awaiting Details from Labour Ministry)
  2. Subsidy Plan for Companies that are under mandatory full suspension, in accordance with the Decrees of the Ministry of Health and the relevant Decisions of the Council of Ministers and participated in the Special Plans of the Ministry of Labor, Welfare and Social Insurance from 16/03/2020 – 31/10/2020:
    • Beneficiaries:

o   Businesses including employers that are under mandatory full suspension, in accordance with the Decrees of the Minister of Health and the relevant Decisions of the Council of Ministers from 16/03/2020. Payment of the lump sum sponsorship will not require an application from the beneficiaries. The prerequisite is that they were included and approved in the Special Plan for the Complete Suspension of Business Work, of the Ministry of Labor, Welfare and Social Security that is implemented in the framework of the emergency measures to deal with the COVID19 pandemic19.

Objective: Coverage of rents and other operating expenses.

Amount of Subsidy / one-time sponsorship:

Businesses including employers that were under complete suspension of their work from 16/03/2020 and employ up to 9 people – € 10,000.

Businesses including employers that were under full suspension of their work from 16/3/2020 and employ 10 people and more staff – € 15,000.

  1. Subsidy Plan for Businesses and Independent Employees who are under mandatory full suspension, in accordance with the Decrees of the Ministry of Health and the relevant Decisions of the Council of Ministers or have a turnover reduction of more than 80% and will participate in the Special Plans of the Ministry of Labour, Welfare and Social Insurance:
    • Beneficiaries:
      • Businesses and self-employed persons who are under mandatory full suspension or have a turnover reduction of more than 80%. Payment of the lump sum will not require an application from the beneficiaries. The precondition is that the beneficiaries  join and be approved for the Special Plans of the Ministry of Labor, Welfare and Social Insurance that are implemented in the framework of the emergency measures to deal with the COVID19 pandemic and will be announced by the Ministry of Labor.

Objective: Grant of rents and other operating expenses.

 Amount of Subsidy / one-time sponsorship:

 

  • Self-employed and very small companies that were or will be fully suspended or have a turnover reduction of more than 80% and will be included in the Special Plans of the Ministry of Labor, Welfare and Social Insurance and employ up to 1 staff member. – € 500
  • Self-employed and very small companies that were or will be fully suspended or have a turnover reduction of more than 80% and will be included in the Special Plans of the Ministry of Labor, Welfare and Social Insurance and employ up to 2-5 staff members. – € 1250
  • Self-employed and very small companies that were or will be fully suspended or have a turnover reduction of more than 80% and will be included in the Special Plans of the Ministry of Labor, Welfare and Social Insurance and employ up to 6-9 staff members. – € 1750
  • Self-employed and small businesses that were or will be under full suspension of work or have a reduction in turnover of more than 80% and will be included in the Special Plans of the Ministry of Labor, Welfare and Social Insurance and employ up to 10-50 staff. – € 2500
  • Self-employed and small businesses that were or will be under full suspension of work or have a reduction in turnover of more than 80% and will be included in the Special Plans of the Ministry of Labor, Welfare and Social Insurance and employ up to 51 or more staff. – € 3000

Notes:

i. The sponsoring authority of the two Plans will be the Ministry of Labor, Welfare and Social Insurance.

ii. It is noted that the measures in question will be notified to the Directorate-General for Competition of the European Commission for final approval as compatible with the state aid scheme and its activation will take place after obtaining the relevant approval.

iii. It is understood that a business can only benefit from one of the above two Plans.

iv. It is noted that in the 3rd Plan, companies that participated in the Winter Suspension Plan of the Ministry of Labor, Welfare and Social Insurance cannot be inducted.

  1. Six-month extension of the Interest Rate Grant Plan for new business loans until 30/06/2021

 In addition to the extension, improvements have been made to the Plan, and in particular the obligation to submit a responsible statement of the applicant’s certified public accountant for very small, small businesses and self-employed which is abolished.

  1. Six-month extension of the Plan for Support of Interest for new housing loans until 30/06/2021

 Regarding the Interest Rate Subsidy Plan for new housing loans, it has been decided that they may include new housing loans which at the time of their issuance were consolidated with existing serviced mortgages, with the following conditions:

    (a) The consolidated loan does not exceed € 300,000.

   (b) The agreement on the new mortgage was signed after 1 March 2020.

   (c) Loans serviced for the same purpose outside the new mortgage loan have been consolidated within the new loan and do not present more than 90 days in arrears.

    (d) The interest rate on the loan which will be subsidized relates only to the new housing loan.

    (e) The Loan and the Borrowers shall meet all other provisions of the Plan.

It is reminded that the above two Plans entered into force in July 2020 and ended on 31/12/2020. Given the interest that has been expressed so far and with the ultimate goal of giving more time to businesses and citizens to join in the Plans, an extension is given to cover business and housing loans that were concluded or will be concluded from 1/3/2020 to 30/6 / 2021.