Christos Staikouras

By George Gilson

The government today announced a sorely needed 300mn euro boost for the Greece's devastated restaurant industry amidst a huge wave of unemployment in the sector.

The total cost of support measures to help citizens and businesses with the economic impact of the pandemic in the first quarter of 2021 is estimated at 5.9 billion euros, Finance Minister Christos Staikouras said on Monday.

Finance Minister Christos Staikouras was expected to provide details on the support measures announced last Friday by Prime Minister Kyriakos Mitsotakis.

A presentation of the latest measures was scheduled for Monday at 9 a.m.

Staikouras was also expected to announce economic support for specific sectors.

The new restrictions announced on Friday are estimated to carry an additional fiscal cost of 200 million euros a month, Finance Minister Christos Staikouras told state broadcaster ERT on Saturday.

He noted that the measures affect 68% of businesses in areas marked "red" for rising coronavirus infections, such as Athens and Thessaloniki.

State revenues were 20% below target last month, according to the Finance Ministry's latest data, forcing it to revise its plans on the side of caution.

The Public Debt Management Agency (PDMA) is awaiting the nod from the European Stability Mechanism (ESM) this or next month to proceed with the early repayment of another part of Greece's debt to the International Monetary Fund, thereby considerably reducing the remainder of the country's dues to the IMF.

The government's pledge for a further reduction of the Single Property Tax (ENFIA) by 8% this year could still be implemented, according to Finance Minister Christos Staikouras, provided the pandemic subsides.

The Finance Ministry is now weighing the cost of the new restrictions on retail commerce, with provisional estimates pointing to an extra burden on the budget that will reach up to 500 million euros per month, or some €120 million a week.

Greece's General Secretariat for Civil Protection signed a deal with the European Investment Bank on Thursday for a total of 595 million euros in aid over a period of five years to help upgrade its infrastructure and better respond to natural disasters.

"The Greek government is working with a plan, method and flexibility to lead the country out of the health crisis and to enter an orbit of high, sustainable, smart growth without any exclusions, laying the foundations for a future of prosperity, opportunities and possibilities for the next generations," Finance Minister Christos Staikouras said in Parliament on Friday.