State extends assistance and steps up support for sectors hard hit by health crisis
Jean Castellini, Minister of Finance and Economy, and Laurence Garino, Director of the Welcome Office, today gave a presentation to members of the press on the additional support for the companies that have been hardest hit by the health crisis.
The Minister explained that “while the Monegasque economy has held up relatively well, assistance and support for sectors experiencing difficulties must be maintained and adapted to current circumstances. The budget for 2021 thus includes nearly €150 million to help support businesses with immediate assistance and, over the longer term, enable a recovery.”
Among the new measures announced, which were developed in consultation with the National Council during the meeting of the Economic Recovery Support Commission (CARE) on 22 February, it should be noted that, for those who received support in 2020 and will continue to do so in 2021:
- the eligibility threshold in terms of lost turnover has been reduced to 40% rather than 50%, and the share of monthly rent (excluding charges) taken into account when calculating assistance has been increased from 50% to 80%.
- for target sectors (ice-cream parlours, bars, snack bars, restaurants, tourism, the events industry, gyms): the “special allowance” will be €2,500 per month during the first quarter of 2021;
- those eligible for the special allowance whose information for the first quarter of 2021 has been updated with the COVID-19 Businesses Unit will receive payment of the relevant allowance by mid-March, without needing to apply for it;
- for restaurants and cafés who submit an application before 12 March 2021, and who are required to dismantle their terraces to allow installation of the upcoming Grand Prix circuit and stands, additional financial aid may be available on an exceptional basis.
The amount of the grant will be calculated based on the presentation of invoices for dismantling, storage and rebuilding of terraces, up to 50% of the costs incurred by the business (capped at a maximum of €15,000).
- regarding loans granted by the State: the repayment period will be extended. Loans granted by the State will see the maximum duration of the loan extended to 84 months, including a grace period of 24 months, to avoid adding to the annual financial burden faced by companies.
Laurence Garino also discussed the economic recovery through an increase in commercial appeal (including by improving Monaco’s listing on international platforms), diversification of the commercial offering (Larvotto project, measures to prevent the withholding of property from the rental market) and the business incubator Monaco Boost.
She also noted the extension of government support for local traders via the CARLO app beyond the end of March.