The US Congress reached an agreement for a US$1.8 trillion stimulus package for the US economy. This is the largest financial rescue in history (investopedia). The legislature will see direct cheques made to citizens as wages, loans to small businesses. The stimulus is expected to drastically expand unemployment insurance, offer hundreds of billions in loans to both small and large businesses and provide health-care providers with additional resources as the coronavirus spreads.
Though the stimulus is a welcome news to the markets, the package has not excited the markets enough. Asian markets continued the rally that was set in motion by yesterday’s record-breaking gains in the U.S., but the optimism flamed out as early gains turned to losses in European markets and U.S. futures.
The British government earlier announced GBP£330 million to support their ailing businesses in heavily affected industries.
Other countries including Pakistan and India have announced packages including small and interest-free loans to businesses, removal on taxes on food and fuel among other packages. The Federal Parliament of Australia rushed through $84 billion in financial support for workers, students and businesses affected by the coronavirus outbreak, before wrapping up for a five-month-long break.
The Local Stimulus Package
Ghana has also taken some steps to help businesses. The provisions announced by the Bank of Ghana may not have direct impact, they are expected to ease liquidity in the system. As the nations still battle to contain the virus spread, businesses also suffer the backlash of low demand.