Brazilian President Jair Bolsonaro announced today (Mar. 1) that the aid to workers and businesses as well as states and municipalities to tackle the new coronavirus crisis adds up to roughly $38 billion, the equivalent of 2.6 percent of the country’s gross domestic product.

Addressing the press at the Planalto presidential palace, Bolsonaro said three provisional measures will be enacted today and tomorrow outlining the governmental assistance and approving an emergency aid of $120 for self-employed and informal workers as well as those with no fixed income.

The president was joined by Economy Minister Paulo Guedes, who stated this aid will cost $18.7 billion to public coffers and should benefit 54 million Brazilians, “so that they have the resources for the three coming months and are able to face the first impact wave, which is the health wave. There’s yet another wave, with economic dismantlement, threatening us,” he said.

The government will also transfer $3 billion to states and municipalities, “to step up the fight on the front line, where the virus is attacking the health care and security systems,” Guedes said.

Job protection

Other measures, the minister went on to mention, are aimed at helping businesses preserve employment. They amount to $9.7 billion for salary complementation, in case workers’ pay or workday are reduced, and $7.6 billion ($6.4 billion from the Treasury and $1.14 billion from private banks) for credit directed at firms’ payroll.

“So, in the case of companies deciding to keep their jobs, we will not only complement salaries but also provide credit for the payment. If a given company runs out of working capital and has cut its workload by, say, 30 percent, we come in with 30 percent of the salary. If it’s out of money to pay the other 70 percent, which it had originally committed to do, we provide credit,” he added.