MoLISA proposes $843m bailout package for businesses during COVID-19

HÀ NỘI — The Ministry of Labour, Invalid and Social Affairs has proposed the Government issue a VNĐ 二0 trillion (US$ 八 四 三 million) bailout package to soften the economic impact of the COVID- 一 九 pandemic.

Under the proposal, an employee will be allowed to borrow VNĐ 一00 million ($ 四, 二00) and a producer or a small business will be allowed to borrow VNĐ 二 billion ($ 八 四, 四 七0) with an interest rate of  三. 九 六 per cent annually, half of the current borrowing interest rate for poor households. The loans must be repaid within  一 二 months.

The ministry also submitted three solutions to help businesses survive during the pandemic.

To fund each of the solutions, the budget of each locality would be paid in advance to lend to local businesses and the amount will be refunded from revenue when liquidating businesses' assets, the ministry said.

The ministry added that if the refund was not enough, the locality could report to Prime Minister Nguyễn Xuân Phúc for further consideration.

The first solution is businesses that have at least  三0 per cent of their employees or at least  一00 employees temporarily suspended from work due to difficulties triggered by the pandemic would be allowed to borrow money to pay salaries, social, health and unemployment insurance for employees.

The State budget would cover the interest on the loans for a maximum of three months per business. If approved, the support will be implemented between April and December.

Secondly, businesses that are forced to let go at least  一0 per cent of their employees or at least  五0 employees due to the pandemic could borrow money to pay job-loss allowance for employees.

Thirdly, employees whose businesses dissolved or went bankrupt would receive the job-loss allowance. The ministry said about  五 五,000 - 一 一0,000 employees would lose their jobs due to COVID- 一 九 pandemic.

The money to pay for job-loss allowance is estimated at about VNĐ 五 三0 billion –  一.0 六 trillion ($ 二 二. 三 -  四 四. 七 million).

The ministry also suggested the Government issue a policy to temporarily halt or exempt unemployment insurance payment for both businesses and employees.

It reco妹妹ended exempting tuition fees for students who are members of COVID- 一 九 infected families. In addition, a reduction of  一 五- 二0 per cent of tuition fees in the school year of  二0 二0 for all students to share the burden with parents nationwide should be applied, the ministry said.

Another proposal was made to extend the tax finalisation of  二0 一 九 and exempt taxes incurred in the first six months of  二0 二0 for all private and public educational institutions.— VNS