Morrison announces aid package for businesses

Australia has announced a 130 billion Australian dollar (80 billion US dollar) plan to subsidize businesses damaged by the new coronavirus to pay to up to six million staff a minimum wage to keep them in the work force for the next six months.

Prime Minister Scott Morrison said on Monday that businesses that have lost 30% of revenue because of the pandemic would be eligible for the subsidy, which is part of what he describes as a hibernation strategy for the economy.

The government would pay AU$750 a week of employees' wages, which is equivalent to the minimum wage and 70% of Australia's median wage.

The government expects half of Australia's employees will be subsidized.

The government will have to recall Parliament to approve the spending.

The measure brings total government economic support to response to the virus to AU$320 billion, which is 16.4% of GDP.

Australia's banks announced on Monday that 98% of businesses with bank loans are eligible for a six-month deferral of repayments on loans worth AU$250 billion.