COVID-19: Spain unveils lifeline amid stock market bust

OVIEDO, Spain

As Spain's economy falters amid surging numbers of coronavirus cases surpassing 3,000, the country's premier announced a wave of special economic measures to deal with the fallout from the COVID-19 outbreak.

"This is a health emergency, but also an economic one," said Pedro Sanchez in a televised press conference on the government's long list of measures that will take effect immediately.

To fight the virus, the Spanish government is injecting around €3.8 billion ($4.2 billion) into the country's healthcare system at both the national and regional levels.

With the country's schools set to close in the coming days, there are mounting concerns that Spain will follow in Italy's footsteps towards a total lockdown. Sanchez also announced that small businesses and freelance workers affected by outbreak would be exempt from paying taxes for six months, which Sanchez said would translate to an estimated €14 billion in extra liquidity for the Spanish economy.

Tourism, which represents around 12.3% of the country's GDP, has been hit by a wave of cancellations as people were warned to avoid all non-essential travel. Sanchez said the government would open a €400-million credit line to aid the sector.

The government also said that anyone who has bought a train ticket with the national carrier Renfe would be able to change the date of their ticket or get a full refund.

Sanchez's announcement, however, did little to relieve investors, as Spain's stock market index, the IBEX 35, closed on Thursday down by over 14% -- the biggest one-day drop in its history, fueled by the U.S. canceling all flights from Europe and the European Central Bank's announcement that it would not cut interest rates.

"Our country is facing an unprecedented emergency," said Sanchez. “If we want to beat this virus as quickly as possible, responsibility and social discipline are necessary."

Spain is the fifth-worst affected country by the coronavirus in the world.

OVIEDO, Spain

"This is a health emergency, but also an economic one," said Pedro Sanchez in a televised press conference on the government's long list of measures that will take effect immediately.

To fight the virus, the Spanish government is injecting around €3.8 billion ($4.2 billion) into the country's healthcare system at both the national and regional levels.

The government also said that anyone who has bought a train ticket with the national carrier Renfe would be able to change the date of their ticket or get a full refund.

"Our country is facing an unprecedented emergency," said Sanchez. “If we want to beat this virus as quickly as possible, responsibility and social discipline are necessary."

Spain is the fifth-worst affected country by the coronavirus in the world.