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Spain is preparing an 11 billion euro direct aid package for the HORECA sector, for the first time in the coronavirus pandemic.
So far, the Madrid government has allocated about 20% of GDP to state-guaranteed loans for companies and technical unemployment for employees.
From Madrid - Reporter: Annamaria Damian - After several requests sent by HORECA associations, whose members have requested direct aid, the executive is preparing a package of 11 billion euros. Prime Minister Pedro Sanchez announced in the control session of the government in Parliament:
Pedro Sanchez: 11 billion euros, ladies and gentlemen, is a large sum, an important resource to continue to support, in the difficult weeks we still have to face to finally overcome the pandemic, the areas that were previously competitive, they were growing and are now in an extremely difficult situation. We are talking about the tourism sector - hotels, restaurants and trade - which can thus make the investments they need, hire employees and adjust their balance sheets to start full economic recovery.
Reporter: The HORECA sector ended 2020 with a half-drop in sales, with losses of 70 billion euros. It is estimated that 85.000 bars and restaurants have closed their doors permanently due to restrictions imposed by the central executive and regional governments.
Translated by: Radu Matei
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