Corona in brief: Facemasks, property prices, contactless payments
An update on corona-related news sees local companies starting production of surgical masks, a homebuying forecast and a rising limit on contact-free payments
Security Council meets today
The Security Council convenes at 14.30, and a press conference is expected late this afternoon or early this evening. Until then, we wrap up some recent coronavirus news.
In the face of problems with imports, two Flemish companies are making preparations to manufacture facemasks. While it could take several months for the first masks to roll off the line, it is hoped that local production will allow all Belgian residents to have free access to masks eventually.
Workwear developers Van Heurck of Antwerp and car interior specialists ECA of East Flanders have ordered the equipment necessary to produce normal surgical masks as well as regulation FFP2 masks – the kind that offer the most protection against viruses. FFP2 masks are standard gear for medical personnel working with infected patients.
The Dutch are currently manufacturing FFP2 masks. So we’ll start with surgical masks, and then we will work out an exchange
Once up and running, the companies will be able to produce four million surgical masks and more than 190,000 FFP2 masks every week. “This will allow us to, if necessary, provide every Belgian citizen with quality surgical masks,” said federal minister Philippe De Backer (Open VLD), head of the medical supplies crisis task force. “We are talking to Bpost about distributing the masks, so that we can get them out immediately if that should prove necessary.”
Belgium is working together with the Netherlands to ensure a supply of facemasks. “The Dutch are currently manufacturing FFP2 masks but not yet surgical masks. So we’ll start our production with surgical masks, and then we will work out an exchange. This will also provide an example of how EU countries can work together” during the coronavirus crisis, said De Backer.
The companies emphasise that the machinery is not yet in place and that the proper materials to make the masks still must be imported. Once the masks are produced, they must also be inspected and approved by medical labs. This means it could be several months before any locally produced masks are available to hospitals, nursing homes and the public.
Contactless pay limit to €50
Belgian bank federation Febelfin, meanwhile, has announced that contact-free payments with bank cards can now be used for charges up to €50. The limit has always been €25 per payment but has been temporarily increased to help curb the spread of Covid-19.
All newer bank cards and many pay terminals allow contactless payment, which just requires waving your bank card in front of the contact-free symbol. This allows customers to pay without touching the terminals to tick in their pincodes.
According to EU regulation, €50 is the top limit for contactless payments, so Belgium is now in line with that. While €50 is the new limit for each transaction, the daily limit for contactless transactions is now €100 (up from €50 previously). The limits are required for security reasons; in case the bank card is stolen, the thief cannot spend more than €100 a day.
Drop in property prices
Finally, the coronavirus crisis will surely mean a drop in real estate prices, according to ING bank. Economist Steven Trypsteen of ING expects that 2020 will see a drop in home prices by some 2%.
Viewing properties and sales procedures not already in progress are banned under the corona crisis regulations. Visits to real estate websites in Belgium have been cut in half since shutdown measures were announced, and the market is currently stalled, according to a study conducted by the bank.
“Figures from notaries show that the number of real estate transactions carried out in the first quarter of 2020 are down by 8%,” said Trypsteen. While figures will also be down in the second quarter, which started two weeks ago, he expects that interest will resume immediately once the measures are lifted.
This means that the consequences to the sector shouldn’t be too dramatic, he said. While ING expects average prices to decrease by about 2%, they could then rise to above average next year to make up for it. The message then: If you’re in the market, buy sooner rather than later.
Photo: AFP/Belga
