Without new round of government aid, service sector fears bankruptcy

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The lack of action by the federal government in combating the pandemic is leading companies to relive the nightmare of March 2020. With depleted financial reserves and running out of cash, especially in the service sector – which accounts for 70% of the country’s GDP – companies and experts say that without the return of relief measures, unemployment and closing deals will skyrocket.

Izabel Serra, 54, had to close her restaurant Canto D’Alice, in the Laranjeiras neighborhood, after 27 years. She tried to sell meals using a delivery app, but her turnover was very low.

Without getting credit and with little cash to maintain his team after the suspension of the measure that allowed him to reduce wages and work hours and suspend the salaries of employees, he chose to dismiss part of them last year.

– Of all the crises, this was the worst. There is no bank, no help, no loan, prices have risen and there is no way to pass it on to the customer. The owner (of the property) even offered free rent until the end of the year, but it is not worth it. We are abandoned – laments the businesswoman who is selling furniture and equipment in the restaurant to pay for terminations.