Hanoi (VNS/VNA) - The Ministry of Labour, Invalidand Social Affairs has proposed the Government issue a 20 trillion VND (843million USD) bailout package to soften the economic impact of the COVID-19pandemic.

Under the proposal, an employee will be allowed to borrow 100million VND(4,200 USD) and a producer or a small business will be allowed toborrow 2 billion VND (84,470 USD) with an interest rate of 3.96 percentannually, half of the current borrowing interest rate for poor households. Theloans must be repaid within 12 months.

The ministry also submitted three solutions to helpbusinesses survive during the pandemic.

To fund each of the solutions, the budget of each localitywould be paid in advance to lend to local businesses and the amount willbe refunded from revenue when liquidating businesses' assets, the ministry said.

The ministry added that if the refund was not enough, thelocality could report to Prime Minister Nguyen Xuan Phuc for furtherconsideration.

The first solution is businesses that have at least 30 percentof their employees or at least 100 employees temporarily suspended from workdue to difficulties triggered by the pandemic would be allowed to borrow moneyto pay salaries, social, health and unemployment insurance for employees.

The State budget would cover the interest on the loans for amaximum of three months per business. If approved, the support will beimplemented between April and December.

Secondly, businesses that are forced to let go at least 10percent of their employees or at least 50 employees due to the pandemic couldborrow money to pay job-loss allowance for employees.

Thirdly, employees whose businesses dissolved or wentbankrupt would receive the job-loss allowance. The ministry said about 55,000-110,000 employees would lose their jobs due to COVID-19 pandemic.

The money to pay for job-loss allowance is estimated at about530 billion – 1.06 trillion VND (22.3 - 44.7 million USD).

The ministry also suggested the Government issue a policy totemporarily halt or exempt unemployment insurance payment for both businessesand employees.

It recommended exempting tuition fees for students who aremembers of COVID-19 infected families. In addition, a reduction of 15-20 percentof tuition fees in the school year of 2020 for all students to share the burdenwith parents nationwide should be applied, the ministry said.

Another proposal was made to extend the tax finalisation of2019 and exempt taxes incurred in the first six months of 2020 for all privateand public educational institutions./.