Business Support Measures
To stop the spread of COVID-19 companies needed to take very strong measures of social distancing and closure of many economic activities. These actions had a great negative impact on companies. It is necessary to protect employment, preserve family incomes, ensure and avoid the destruction of businesses.
Difficult weeks have passed to maintain businesses, economic life and jobs necessary to continue economic activity until the moment of recovery. Consequently, the Council of Ministers has approved a number of important measures to relieve the cash flow of businesses in order to remain sustainable in these times.
An extraordinary support mechanism for the maintenance of employment was approved by the Government, which ensures that Social Security becomes responsible for contributing substantially to the payment of the salaries of employees who are not available to work.
By the end of September this year all debt obligations for interest and capital payments will be suspended due to the approval of an important banking moratorium. As well as the payment obligations to Social Security, the submission of VAT and the submission of withholding taxes and IRC have also been postponed.
These measures have the great goal of avoiding the company's bankruptcy. In addition, credit lines have been created to support companies with State guarantees so that they can access financial resources and fulfil their commitments.
These are difficult times, of sacrifices for companies, employees and taxpayers. This is when we must all be together and overcome this difficult time in the economy in the best possible way.