Government could support businesses hit by coronavirus crisis with up to CZK 1 trillion

The Czech government could support Czech businesses hit by the effects of the coronavirus crisis to the tune of up to CZK 1 trillion, Prime Minister Andrej Babiš said on Wednesday. Speaking after a cabinet meeting on Wednesday, Mr. Babiš told journalists that figure could include CZK 100 billion in direct aid and CZK 900 in guarantees.

The minister of industry and trade, Karel Havlíček, said the government was conducting analyses and that the planned direct aid could go toward compensation for wage payments, remission of levies, financial injections and short-time working.

Meanwhile the Ministry of Finance expects to raise the projected state budget deficit for this year, Minister Alena Schillerová said. A deficit of CZK 40 billion had been envisaged but that will now increase by tens of billions, the Czech News Agency reported.

Author: Ian Willoughby