Here are the coronavirus rescue plans in the works around the world – Quartz

This report was updated on March 30 and will continue to be amended as the stimulus measures are announced.

Governments around the world are rushing to support people and businesses until the novel coronavirus is contained. The only questions are how much money to inject into the economy, how to go about it and if it will be enough.

Paris officials in Washington DC use the playbook used to contain the 1918 flu pandemic: they restrict movement and repress public gatherings. While these measures have the potential to reduce deaths and infections, they will also hurt the business prospects of many companies and cause synchronized global disruption.

“The policy response must be MASSIVE”, Harvard economist Kenneth Rogoff told Quartz. “The fiscal policy response in the healthcare sector is to treat this as a WAR, and nothing less, convert the facilities into temporary hospitals, factories to manufacture respirators and face masks. “

Governments and other institutions around the world are looking to buy their countries time until the crisis is brought under control:

we

• President Donald Trump signed a $ 2 trillion stimulus bill that includes $ 500 billion to support business loans and $ 350 billion for small businesses. Low- and middle-income adults will receive $ 1,200 and $ 500 for each child, while unemployment insurance is reinforced.
• The Federal Reserve has promised a unlimited amount asset purchases to support markets, including, for the first time, the purchase of corporate bonds and exchange-traded funds. The central bank earlier reduced interest rates close to zero. Fed officials are encouraging lenders to nibble on their capital holdings to help their clients.
• The Fed restarted a financial crisis-era loan facility on March 17 to commercial paper. The short-term funding program is planned for a period of one year. The central bank launched its Primary trader credit facility, offering overnight and term financing, the same day.

China

• In China, the country of origin of the Covid-19 epidemic, the government has reportedly planned to $ 394 billion infrastructure spending, backed by local government bonds.
• Banks would have government approval for renew loans, relax overdue debt guidelines, avoid reporting defaults, and prevent borrowers from making payments.
• People’s Bank of China cut bank reserve requirements to free up $ 79 billion for loans to businesses affected by the crisis and says it will cut interest rates for borrowers.

Australia

• The government plans 320 billion Australian dollars ($ 197 billion) of spending and borrowing available. The package includes wage subsidies of A $ 1,500 every two weeks for each employee.
• Parliament had already agreed to over A $ 80 billion in fiscal stimulus.

Denmark

• Danish government pays 75% employee salaries, up to $ 3,288 per month, in private companies that have been affected by the pandemic.

Japan

• The government announced a spending program of around $ 4 billion which focuses on small and medium businesses. A government-affiliated lender will offer funds that charge (effectively) no interest to small businesses whose revenues have fallen due to the virus.
• The Bank of Japan will buy over $ 100 billion value of exchange-traded funds, double its previous commitment, while setting money aside to keep the corporate finance markets functioning.

Germany

• The Berlin government signed a 750 billion euros ($ 800 billion) as well as plans for loans, guarantees, government equity in businesses and credit to keep businesses afloat.
• “We promised that we will not fail because of a lack of money and political will”, said German Economy Minister Peter Altmaier. “We will reload our weapons if necessary. “

Spain

• Officials are prepared to do as much as $ 219 billion of aid available, including 100 billion euros in loan guarantees for businesses and 17 billion euros in direct aid to businesses.
• Prime Minister Pedro Sanchez has reportedly said private investment will provide support of € 83 billion.

UK

• The British government said on March 20 that it was drafting a blank check for workers: Government grants will cover 80% of the wages of retained workers up to a total of £ 2,500 ($ 3,084) per month; no business will pay VAT until June, which is worth £ 30 billion.
• On March 26, Chancellor Rishi Sunak unveiled a similar initiative for the self-employed who earn up to £ 50,000, offering them 80% of their average income over the past three years.
• The spending measures will cost approximately 60 billion pounds sterling (paywall), according to Financial Times estimates.
• Officials said on March 17 that they were setting up a rescue fund for 330 billion pounds sterling—About 15% of gross domestic product — to provide state-guaranteed loans to support UK businesses. Smaller retail, hospitality and leisure operators will be eligible for cash grants of up to £ 25,000.
• The March 17 package also includes three months mortgage vacations for homeowners in financial difficulty due to the pandemic.
• Officials in London have pledged £ 30 billion emergency spending on March 11. This includes a £ 5bn emergency response fund for the National Health Service, statutory sickness benefits for people who have been asked to self-isolate and sickness benefit reimbursements for healthcare companies. less than 250 employees.
• the bank of england lowered its target rate to an all-time high of 0.1% and increased its bond buying program to $ 230 billion on March 19. The central bank had previously implemented a cheap credit program and gave banks more lending possibilities. Its term financing program is aimed at small businesses.

France

• The officials will pass 45 billion euros to help small businesses and employees.
• President Emmanuel Macron said there would be unlimited aid for businesses.

Italy

• The government approved 25 billion euros ($ 49 billion) in support for businesses and workers, including extra money for the health care system, by increasing unemployment benefits, freezing tax and loan payments and suspending mortgage payments.
• The effort will also use € 340 billion in funding, with further efforts expected to follow.

India

Canada

• The government is planning a package totaling 82 billion Canadian dollars ($ 56.7 billion), which includes C $ 27 billion in support for individuals and businesses and C $ 55 billion in temporary tax deferrals for businesses and households.
• The Bank of Canada cut its overnight interest rate by 50 basis points to 0.75% on March 13.

International Monetary Fund

• The international organization, which has 189 member countries, says it is ready to mobilize $ 1,000 billion in loans.
• Up to $ 10 billion is available for low income countries using zero interest rate facilities.

EU

• The authorities are considering reallocating their bailout fund, initially designed to tackle the eurozone sovereign debt crisis, to cushion the impact of a recession. The European Stability Mechanism has more than 400 billion euros unused capacity.
• The European Commission assesses a 37 billion euros Coronavirus response investment initiative for use by healthcare, support workers, and small and medium-sized businesses.

European Central Bank

• The central bank of the euro area has launched a 750 billion euros Emergency pandemic purchasing program on March 18. The program is expected to last until the end of 2020 is authorized to buy Greek debt.
• The ECB has also started buying commercial paper, a form of short-term borrowing.
• The euro central bank kept its main policy rate at -0.5% on March 12 while stimulating asset purchases of 120 billion euros.
• Policymakers have said they will offer cheap loans to banks in the region, while ECB President Christine Lagarde has said governments must spend money to contain the economic fallout.