ECONOMY

Losses offset for legal entities too

losses-offset-for-legal-entities-too

The government has decided to include legal entities that lease out properties to companies benefiting from the 80% rent cut in its landlord support program, as it realized that they too have suffered a huge blow.

These entities, including midsize companies and charity foundations and organizations, have been hit hard by the 40% rent cut that enterprises affected by the pandemic’s measures have enjoyed since the spring. Since March, when the measure came into force, thousands of legal entities have seen their revenues slump without any state compensation at all.

A top government official said, “The legal entities will be compensated, but not to the degree of individual landlords.” The latter will get three-quarters of their losses back in January and February, as the 80% rent cut will be mostly offset by the 60% compensation from the state.

Sources say the state will compensate legal entities to the tune of 40%, or half of their losses.