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| - Governments and central banks are injecting eye-popping sums into the stricken global economy and adopting emergency policy remedies as they try to limit the impact of the coronavirus. AFP surveys responses by major economies as COVID-19 has spread from China to infect the rest of the world, crashing financial markets, sparking national lockdowns and crippling businesses: The most gargantuan sum yet is in the works in Washington after Senate Republicans on Thursday presented a $1 trillion emergency relief package. The measure -- far surpassing aid during the 2008 financial crisis meltdown -- is likely to include direct cash payments to struggling families. The package is in addition to $100 billion directed at paid sick leave and expanded unemployment benefits signed into law by President Donald Trump on Wednesday. Trump has ordered the suspension of evictions and mortgage foreclosures for six weeks as part of the government effort, and annual US income tax declarations have been delayed for three months until July 15. The Federal Reserve has taken interest rates down to virtually zero, and is offering generous terms for banks to help prop up households and businesses. In its latest effort to pump funds into the economy, the Fed on Friday announced new measures to enhance liquidity in state and municipal money markets. And the Fed has joined other central banks in enhancing currency swaps to keep dollars -- the lifeblood of the global economy -- flowing through seized credit markets. Canada on Wednesday announced an aid package of Can$27 billion (US$19 billion) plus more in tax deferrals, and has also cut interest rates. The International Monetary Fund is making $50 billion available for poorer countries, and has appealed for a "global response" of the kind seen after the 2008 crash. Saudi Arabia, which holds the G20 presidency, has called for a summit of the group's leaders next week. As with all other gatherings now, it would be in "virtual" format. Europe is now the epicentre of the COVID-19 outbreak and governments have scrambled to open the spending taps while also closing their borders. The European Central Bank, after being criticised for a lacklustre response when it kept rates on hold last week, on Wednesday announced a 750-billion-euro ($820-billion) scheme to buy government and corporate bonds. The ECB said on Friday that having relaxed its capital buffers for banks, an extra 1.8 trillion euros was coming online to help cash-strapped companies and households. Germany has unveiled 550 billion euros in government-backed loans "for starters", and suspended legal obligations for firms facing acute liquidity problems to file for bankruptcy. Big spending plans have also been announced by Britain, France and Italy -- which has now overtaken China to register the most deaths from COVID-19. The Bank of England Thursday cut its main interest rate to a record-low 0.1 percent, and is joining the Fed and ECB in buying up more government and corporate bonds. Sweden's government on Friday announced another 125 billion Swedish kronor ($12.2 billion, 11.4 billion euro) in credit guarantees and loans for small businesses. China, ground zero of the virus outbreak, has cut interest rates and vowed a range of measures including tax cuts and more fiscal transfers from Beijing to virus-hit regions. New Zealand Tuesday raided its "rainy day" fund to release NZ$12.1 billion (US$7.3 billion) in stimulus spending. Last week, Australia unveiled a US$11 billion spending plan to help avert its first recession in 29 years. On Thursday its central bank also cut interest rates to record lows. Japan, which faces a huge financial hit from the possible postponement of the Tokyo Olympics this summer, is offering at least $15 billion in loan programmes for firms. South Korea unveiled an unprecedented support programme for small businesses worth 50 trillion won ($39 billion). Hong Kong's government is giving a cash handout to every permanent resident, with a recession brought on by months of protests now exacerbated by the coronavirus. burs-jit/rl
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