Madrid, Mar 19 (efe-epa).- Financial institutions, central banks, and governments across the world have launched a slew of measures and allocated over $6 trillion in funds to mitigate the economic impact of the new coronavirus pandemic.
With the 2008 economic crisis still fresh in everyone’s mind, authorities are acting on the common goal of saving the economy from the impact of the disease, which has forced businesses to shut down in a growing number of countries, paralyzed international travel and disrupted global supply chains.
Some of the major steps being taken are as follows:
The United States’ Federal Reserve and Treasure has launched exceptional measures worth more than $1.2 trillion to boost liquidity in the financial markets.
The International Monetary fund has assured that it was “ready to mobilize” its entire lending capacity – $1 trillion – to help countries tackle the crisis.
The European Central Bank has announced a plan of purchasing public and private debt in bonds worth 750 billion euros ($810 billion), titled the Pandemic Emergency Purchase Program.
The Bank of Japan has activated several measures to deal with the crisis, including an 80-trillion yen ($727 billion) hike in the program to purchase sovereign bonds and doubling the purchase of listed investment funds up to 12 trillion yen.
The World Bank expects to mobilize $12 billion to help countries deal with the economic and health-related impact of COVID-19.
The US government has unveiled a fiscal stimulus package worth nearly $1 trillion that includes deferred payment of taxes, aid to especially affected sectors such as airlines and hotels and cash distribution to citizens.
The European Commission has proposed mobilizing investments worth 37 billion euros to deal with the epidemic and allowing member countries to use around 8 billion euros that they had received in unutilized structural funds and were due to return.
The Spanish government expects to channelize around 2 billion euros in different initiatives, including a series of guarantees to ensure that liquidity is available to companies.
Germany has promised an “unlimited” credit program to prevent liquidity problems in its business sphere, with the loans guaranteed with more than half a trillion euros and to be coordinated through its public bank.
The French government’s plan to keep the economy afloat includes measures valued at around 45 billion euros, ranging from delayed payments of taxes to salary bonds for employees of companies that have halted production and loan guarantees worth 300 billion euros.
The United Kingdom has announced a loan guarantee plan worth 330 billion pounds ($380 billion), expandable “as required” and a direct aid package to companies worth 20 billion pounds.
Italy has set into motion an aid package of up to 25 billion euros, which includes aid to families, companies and individuals, credit lines and a plan to nationalize its flag carrier Alitalia.
The People’s Bank of China has injected 200 billion yuan in liquidity through mid-term loans.
The government of Brazil has initiated a plan worth $28 billion that combines measures to aid the most vulnerable sections of the society and certain economic sectors. EFE