Crisis, Financial Services, Labour-market, Latvia, Wages

Reirs said that the Finance Ministry will on Thursday propose support measures for businesses that are currently forced into idling due to the coronavirus pandemic - in the sectors that suffering the most from the Covid-19 crisis, employees will be paid 75% of their wages from the state budget, with the maximum monthly payment per employee set at EUR 700.

The Finance Ministry will work with the Latvian Chamber of Commerce and Industry (LCCI) to determine which sectors of the economy need such support, but it is already clear that this Thursday the government might decide on providing this assistance to hospitality enterprises, including hotels and restaurants.

According to the finance minister, the support measure might be effective as of March 13, when the government declare a state of emergency. 

As reported, to mitigate the negative impact of the Covid-19 pandemic on the Latvian economy, the government on Tuesday approved a number of proposals, including to finance employees' sick-leaves from the state budget, postpone advanced personal income tax payments in 2020 and to extend businesses' tax holidays from one to three years. 

A decision was also taken to support businesses with financial instruments.