Reuters reports that Spain's Prime Minister Pedro Sanchez announced on Wednesday an additional 11 billion euro package for small and mid-sized companies and the self-employed to help them cope with the economic crisis due to the coronavirus pandemic.

Government source said the plan, whose details were still being discussed with the Bank of Spain and the banking sector, would include haircuts for state-back loans and recapitalisation of SMEs.

That would aim to bolster corporate solvency after the Spanish government initially provided mainly state-backed loans, while the sectors most hit by the crisis, including restaurant owners, demanded direct aid.

Spain has been one of the countries most hit by the pandemic with more than 3 million cases and more than 68,000 deaths, although coronavirus incidence slipped below 250 cases per 100,000 people - for the first time in two months on Tuesday.