French government announces $4.3 billion plan to support startups

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As France and entire Europe is struggling to contain the spread of Covid 19 pandemic, financial experts suggest that the chances are ripe for the next recession to emerge by August this year.

So, under such circumstances, the government of France has announced a $4.3 billion support package for companies that are struggling with revenue as well as funding issues to sustain in business.

The Ministry of State for Digital Affairs in association with Bpifrance and led by Ludovic Marin has announced that the French government has taken an initiative to bridge the financial vacuum with refinancing and liquidity measures for freshly started companies which are providing employment.

Cedric O the Secretary of State Digital Economy has made an official statement on this note yesterday and stated that the funding will initially focus on companies that are offering innovation-driven products and services during the Coronavirus pandemic and lockdowns such as telemedicine appointments, remote work solutions, and some delivery related initiatives.

During the lockdown, companies which are facing funding issues can skip their annual tax payments, utility bills and rental reimburse. To do so, the government of France has mobilized $320 billion as liquidity support- making it easier for startups to gain loans.

Also, those companies which have initiated short-time working schemes giving opportunities for freelances will receive a funding backup from the government as most of the employee salary will be repaid by the Emmanuel Macron led government.

Hope, all this backing up of Startups pays back the government in one way or the other as loan repayment options might affect the national economy in a holistic way in the long run.