News in English     | 13.03.2020. 11:17 |

Businesses in Tuzla Canton already with serious consequences due to coronavirus

FENA Maja Nikolić

TUZLA, March 13 (FENA) - Businesses from the Tuzla Canton have expressed concern about the already significant impact of coronavirus on the BiH economy.

At the Tuzla Cantonal Chamber of Commerce, they also presented a questionnaire aimed at gaining insight into the effects of coronavirus on the operations of companies with regard to dealing with countries affected by coronavirus and other key foreign trade partners. The questionnaire also includes questions regarding the assessment of financial harm and the impact of employees' absence on business operations.

“The biggest problems so far have been reported in the textile, leather and footwear industries, where production has been halved or even completely discontinued, as the main source of raw materials but also the export market is Italy; it is an intensive industry that employs a large number of women and is therefore particularly sensitive,” said Nedret Kikanović, Chairman of the Tuzla Canton Chamber of Commerce.

A significant problem is seen in the sector of international transportation, especially in tourism, and the number of passengers arriving in BiH has been reduced.

“Foreign trade is expected to decline, but we still do not have specific indicators. Yesterday, we distributed a questionnaire to businesses to evaluate the current and expected damages as consequences of the epidemiological situation and 70 of them have already answered and expressed their concern,” said Kikanović.

According to the first indicators in the questionnaire, 76 percent of Tuzla Canton firms said they already see the effects of coronavirus on their businesses. These are mainly manufacturing, as well as transport companies.

“This is expected, given that our most important foreign trade partners are Germany, Austria, Slovenia and Italy,” says the Chairman of the Tuzla Canton Chamber of Commerce.

Also, 64 percent of firms say they have already suffered financial damages, and 86 percent of firms expect to experience even more significant financial consequences in the coming month.

“One of the concrete measures that can be taken is for the state to meet its obligations towards businesses, such as reimbursement in case of illness, especially maternity leave, which would provide companies with the means to at least partially secure liquidity. We are looking for other ways and sources of funding and unburdening of the economy that can be implemented quickly, at least in the short term, by suspending and abolishing various taxes,” Kikanović said urging the competent institutions to take action.

(FENA) S. R.

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