A 3.3-billion-euro package of measures was announced by the Greek Government on Thursday, aiming at relieving workers and households from the pressure of the second imminent lockdown. In this context, and according to a speech given by the Greek Minister of Finance, the key – points of the supporting package of measures are the following:
Suspension of employees of severely affected businesses
Employees of businesses which belong to the list of severely – affected businesses, according to their Activity Code Number (ΚΑΔ) may be suspended by their employers. Suspended employees are entitled to receive a monetary State – aid and their social security contributions will be totally covered by the State.
Especially when it comes to employees who are employed until 04.11.2020 and are suspended for the month of November, the State – aid will be paid early December, prorated to the time they were suspended during November and will be calculated on the basis of 800€ instead of 534€. This extra State – aid benefit will be distributed in addition to the Christmas bonus.
Suspension of tax payments
Businesses suspended by State order will have the option of suspending VAT payments for November or pay their dues in 12 installments with zero interest.
Suspension of other payment obligations
Businesses suspended by State order will also have the option to temporarily freeze the November installment for arrears in taxes and social security contributions. Employees whose contracts are suspended are also being granted the privilege
Suspension of loan instalments
Banking institutions accepted the suspension of loan instalments, until the end of year 2020.
Extension of unemployment benefits and financial support to the unemployed
Unemployment benefits expiring in November and December are extended for an additional two months, while 130,000 long-term unemployed people will receive a one-off stipend of 400 euros.
Reduction of rent
Businesses that are listed based on their Activity Code Number as severely affected, as well as private tenants whose employment contracts have been suspended, are entitled to a reduction in rent of 40%. As to the property owners who lease their properties, they are entitled to receive ½ of their rent loss (i.e. ½ of the 40% that is being reduced by the total amount of rent) right away to their bank accounts, by the State.
Returnable deposit
The list of businesses that are entitled to benefit from the Returnable Deposit scheme, which is a collateral fund for small and medium-sized enterprises, has been expanded. Businesses suspended by state order are benefited from the scheme, regardless their turn-over, while they will be receiving minimum 2.000€. All individual businesses and start-ups are also entitled to participate to the scheme, while it has already been announced in previous relevant announcements that 50% of the returnable deposit shall not actually be returned by the beneficiaries.
Suspension of check payments
A plan for extending the payment of checks is currently under process.
The respective legislation which is expected to be soon adopted by the Greek State will regulate all the above matters in clarity and it will provide specific definitions and guidance for the implementation of the measures.
