Ireland’s Fiscal Response to COVID-19

Mar 18, 2020

 

The Parliamentary Budget Office has provided an overview of the fiscal measures that have been announced to tackle the COVID-19 pandemic at a national and European level. It also discusses the impact these measures will have on the Exchequer. The measures consist of a package that will cost roughly €3 billion covering a Social Welfare package, funding for the HSE and supports for businesses.

 

In addition to a Social Welfare Package of €2.4 billion, and funding for the HSE comprising of a €435 million package, the Government has announced many supports for businesses adversely impacted by the COVID-19 outbreak. These supports include:

  • A €200 million package of business supports will be made available by Enterprise Ireland for struggling firms.
  • Loans (up to €1.5 million) will be provided by the Strategic Banking Corporation of Ireland’s Covid-19 Working Capital Scheme at reduced rates.
  • MicroFinance Ireland will increase their potential loan threshold from €25,000 to €50,000.
  • A Credit guarantee scheme will be provided by the pillar banks to affected firms. Loans of up to €1 million will be available.