On March 31, the Executive took a series of steps in response to the health, economic and financial emergency caused by the spread of the coronavirus, including extending compulsory isolation measures, establishing a fund to help stricken companies, and prohibiting layoffs.

The Government issued a Decree of Need and Urgency (DNU) 325/20, formally ordering the extension of the Social, Preventive and Compulsory Isolation, and adopting restrictions related to people’s movement. Under these new measures, all public employees must work from home. The regulation will be in force until April 12.

Support for business

The Government also issued DNU 326/20, creating a Specific Fund to help Micro, Small and Medium-sized Enterprises (MSME) included on the MSME register access to working capital loans. The idea is to help them repay working capital loans, payroll, employer and other contributions, and provide for deferred check coverage.

AR$ 30 billion will be transferred to the Argentine Guarantee Fund (FoGAr in Spanish) which will also provide support for financial entities authorized by the Central Bank (BCRA) and other non-financial entities developing financing tools. There will also be increased support from mutual guarantee societies and other national, provincial, regional or Buenos Aires City funds, constituted by provincial governments, regardless of their legal status.

Layoffs amid COVID-19 banned 

The president also issued Decree 329/20 banning “unfair dismissals and those made on the grounds of the lack or reduction of work or due to force majeure” for a period of 60 days, starting April 1, 2020. Fernandez also prohibited the suspension or reduction of work for the same period.