Covid-19 Government Schemes, common themes and potential pitfalls

Date: 31/03/2020 

Speakers: Mark Weil and Emine Constantin 

Given the unprecedented measures that governments had to impose to protect health, the main economic concerns are liquidity and decreasing demand. To support liquidity, governments have chosen to apply one or a combination of schemes aimed at providing financial support, tax reliefs or employment support. For the time being, the support seems to be mostly focused on the affected industries and on self-employed or small and medium size enterprises.

Looking at the direct financial support, government aids come in the form of grants or subsidies, but those are mainly targeted at the affected industries and small size enterprises. For medium and larger size companies, the financial support is in the form of loans, either low interest loans or government backed loans.