Set of Support Measures for Economy and Citizens Worth EUR 5 Billion

Monday, 30. Mar 2020.

A detailed set of measures of support to the economy and the citizens, aiming to address the crisis caused by the global coronavirus pandemic, will be presented on March 31, 2020.

This set of measures, which is meant to help individuals, large and small companies and agricultural production is worth EUR 5 billion, as Serbian President Aleksandar Vucic revealed on TV Prva.

– There are three ways of financing aiming to help the economy, namely, money from the internal reserves, loans in the local securities market and loans in the international market – Vucic said.

He hinted at some of the measures from the announced package, including the extension of the tax and contribution payment deadline and the deadline for the advance income tax payment for the next year, an injection of EUR 2 billion from banks through the guarantee fund for company liquidity and EUR 700 million of support to small and micro companies.

– The state will pay the minimum wage for all employees for all enterprises, small and micro companies for the three months, regardless of whether they were operational and whether they paid salaries to their workers. We want those companies to be able to continue to operate and to cover their insolvency – Vucic said and pointed out that only those that have not let go more than 10% of the employees could count on those measures.

He explained that, when it comes to the solvency of medium companies, and especially small and micro companies, a model of aid is being prepared with the banks in Serbia, entailing the banks" offering EUR 2 billion in favorable loans to the market, which the state will support with EUR 480-600 million.

According to him, the annual interest rate should be 3.57% on dinar loans, and the state will provide a three-year guarantee.

The Development Fund, he added, will also invest EUR 200 million for favorable loans to companies, where the interest rate on euro loans will not exceed 1%, with a grace period of 9-12 months.

He also announced that medium and large companies would be able to issue corporate bonds, which the state will buy out, thereby providing them with funds for their operations.

According to Vucic, the state will also help Air Serbia, which is recording great losses, and there will be no obstruction there, as the bans on state aid to public and state companies do not apply during the state of emergency.

He added that they were considering aid to farmers and dairy producers, that is, those who sell their products at the green market, and there will be additional support to the hospitality and hotel sector.

According to Vucic, there are talks about how all citizens could be helped with a one-off payment of EUR 100, amounting to a total of EUR 520 million, which would increase the spending.

Source: eKapija

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