Politicians will borrow 300 billion dollars to coronafond

The Radical Left and the Danish people's Party supports the proposal of a variety's top economists, who suggest that the state create a bail-out fund of 300 b

Politicians will borrow 300 billion dollars to coronafond

The Radical Left and the Danish people's Party supports the proposal of a variety's top economists, who suggest that the state create a bail-out fund of 300 b

Ann McDonald
Ann McDonald
18 mart 2020 Wednesday 22:00
16 Reads
Politicians will borrow 300 billion dollars to coronafond

The Radical Left and the Danish people's Party supports the proposal of a variety's top economists, who suggest that the state create a bail-out fund of 300 billion crowns, which will cover the loss of hard-hit companies.

There are already reports of a growing number of the unemployed in Denmark, and many companies will in the future experience a decline, because large sections of society are shut down because of the outbreak of the coronavirus.

- If not this health crisis will translate into a financial crisis, which extends far out over the months, we are fighting the epidemic, so there is a need for the state to make a big bail-out fund.

- It should be a signal that we support the companies, which are forced in the knees, so that we can ensure that the jobs are there, when the shops are open again, says the leader, Morten Østergaard (R).

He is Wednesday night for talks in the ministry of Finance, where the government and the political parties negotiating to find a solution for the small - and medium-sized enterprises, as well as the self-employed and freelancers.

the Government has already introduced and implemented a number of actions. On Wednesday it was last presented.

in Parallel suggests a variety's top economists with ties to the think tank Kraka in Wednesday's Berlingske, Denmark takes out a loan of 300 billion dollars.

They must be placed in a bail-out fund, and the assessment is that it is enough to cover the whole of the private sector value creation in about two months.

Topøkonomerne suggests that companies for the period in which the society is put down by the epidemic, can get paid, for example, 90 percent of their decline.

It is in comparison to the same period last year. Economists recognize a number of challenges, but call it the least bad solution.

It must be a condition that companies do not lay off employees.

the Proposal is possible because of the currently very low interest rate. Is the interest rate one percent, it will mean an additional annual state cost of three billion dollars just to pay the interest on the debt.

President Jacob Ellemann-Jensen (V) says to TV2 News, that the Left supports the idea.

- we create a fund of 300 billion dollars, sends a very clear signal to businesses, employees, the market and the outside world that we mean it when we say that we are ready to do what it needs to, he says.

Updated: 18.03.2020 22:00
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