April 2 (SeeNews) - Moldova’s government will allocate 816 million lei ($44.6 million/ 40.8 million euro) to support businesses and individuals affected by the coronavirus disease (COVID-19) outbreak, the finance ministry said.
The bill provides for an increase of unemployment benefits and the minimum guaranteed monthly income, as well as reduction of VAT for restaurants and bars to 15% from 20%, the finance ministry said in a press release on Wednesday.
The government will obtain the necessary funds by re-directing revenue from several existing taxes and fees towards the relief package, according to the draft bill published on the finance ministry's website.
The support will be granted to local businesses and people in need during the 60-days state of emergency declared because of the coronavirus pandemic last month. The state of emergency is expected to end on May 16.
The government has assumed responsibility before parliament for the financial support bill, in order to ensure its fast-track approval.
The latest figures available from the health ministry show that coronavirus cases in the country have risen to 423 as of Thursday from 353 a day earlier.
So far, Moldova has registered five deaths from COVID-19 on its territory.
Since March 23, Moldova's emergency situations committee decided to bar people older than 63 years from leaving their homes except for going to work, buying medicines or food, or walking their pets.
The International Monetary Fund (IMF) said in late March it is prepared to extend $117 million (106 million euro) in financing to Moldova to help the country limit the impact of the coronavirus outbreak on its economy.
Also at end-March, the European Commission announced that it has reallocated 140 million euro as part of the global response to the coronavirus outbreak, to finance most immediate needs in Moldova, Armenia, Azerbaijan, Belarus, Georgia and Ukraine.
(1 euro = 19.9611 lei)