Virus: a stimulus package of 26 billion euros in South Korea

Virus: plan de relance de 26 milliards d’euros en Corée du Sud

Seoul | The south Korean government announced Wednesday a plan to raise an unprecedented $ 26 billion of euros to support the economy affected by the outbreak of novel coronavirus.

The south Korean economy contracted by 1.3% between January and march, the quarterly decline is the biggest since the financial crisis of 2008.

This plan, in the amount of 35.300 billion won (26 billion euros), is the third announced by the government of Moon Jae-in in order to respond to the crisis of the sars coronavirus.

The previous two, released in march and April, amounted to 11 700 and 12 200 billion won.

In all likelihood it will be adopted by the Parliament in which the democratic Party of Mr Moon has the absolute majority.

The plan provides for the creation of 550,000 jobs and the establishment of an emergency fund for small and medium-sized enterprises hit by the crisis. Nearly 10,000 billion won are intended to promote employment and social safety nets.

This plan will be financed over two-thirds by bond issues of the State, according to the ministry of Finance, while the rest will be covered through adjustments in public spending.

South Korea was the end of February the second country in the world most affected by the epidemic, after the China, where it has appeared. No containment required has not been imposed, but the population has it even applied very widely to the rules of social distancing.

Last week, the Bank of Korea (BoK) said expect a decline in GDP of 0.2% over the whole year, while it had forecast in February growth of 2.1%.

The international monetary Fund (IMF) anticipates a decline in the south Korean economy, the twelfth world, 1.2% this year.

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