The Trade Department is pushing for the immediate passage of the proposed Philippine Economic Stimulus Act of 2020 to provide immediate assistance to workers and businesses and help the economy recover from the impact of the coronavirus pandemic.
“We affirm the need to help sustain the income of workers and businesses adversely impacted by the pandemic as we gradually reopen our economy,” said Trade secretary Ramon Lopez.
“By providing working capital assistance, technical and entrepreneurial education, and financial management, among others, we will be able to protect Filipinos by ensuring businesses will continue operating post-lockdown and help turn the tide for businesses and workers affected by the health crisis,” he said.
Under the PESA bill, the government will earmark P1.3 trillion as a post-pandemic stimulus package which includes a budget of P650 billion for an expanded infrastructure program on health care, education and food security.
The proposed measure also aims to allot P300 billion for the National Emergency and Investment Corp. to “minimize the damage” wrought by COVID-19 to the economy; P200 billion for wage subsidies and the grant of interest-free loans to assist micro, small and medium enterprises including businesses labeled “non-essential” during the lockdown; and P128 billion for the Credit Mediation and Restructuring Guarantee Fund, an expanded loan program that will cover all “critically-impacted businesses” nationwide.
The bill aims to restore business confidence and operations and prevent business closure prior to the imposition of the enhanced community quarantine.
Lopez said businesses already lost significant income amid the challenges in logistics brought about by the ECQ.
“As we work towards the gradual lifting of the quarantine, more businesses will be able to operate, but at lower capacities due to limited capital resources that dwindled during the quarantine period. There are also strict health measures that are being imposed and the firms would need working capital loans,” he said.
“At a very critical time such as this, we must not only ensure a safe working environment for our citizens, but also continue to find means to support, and more importantly save the jobs of those adversely affected to facilitate faster economic recovery,” Lopez said.