News in English     | 03.04.2020. 15:29 |

FBiH Govt. adopts Draft Law on mitigating economic consequences of Covid-19

FENA Hana Imamović

SARAJEVO, April 3 (FENA) - The Government of the Federation of Bosnia and Herzegovina today in Sarajevo endorsed a Draft Law on Mitigating the Negative Economic Consequences of Coronavirus Pandemic, which marks the beginning of an economy rescue plan in the Federation of BiH, confirmed FBiH Prime Minister Fadil Novalić. 

After the Government session, Prime Minister Novalić explained that in order to implement the measures envisaged by the law, a budget revision would be done and all its items carefully analyzed.

The law provides for 10 measures to mitigate the negative economic consequences of the Covid-19 pandemic, and Novalić stressed that it is important to preserve jobs and that contributions to the minimum salary will be paid from the budget for all workers in the real sector, excluding public and financial sectors.

The law will also provide additional funding for cantons and municipalities through the reallocation of funds for public shelters and farm conversion fees and all other assets that can be used to save the economy.

"All these funds must be diverted by cantons and municipalities to remedy the effects of the pandemic. In this process, special care must be taken of businesses that are unable to work. They will be allowed suspension of para-fiscal levies and other fees,” the PM added.

He urged the cantons and municipalities to start drafting programs today because they have the best insight on which sectors need our support the most and stressed that the law guarantees the stability of all payments from the budget, primarily pensions, veteran care, social and other benefits, as this cannot and should not be jeopardized.

"Businesses will be freed from the obligation to pay income tax advances and small crafts will be freed from paying income tax. Interest rates on public revenues and debts in the economy are also being abolished. All administrative and judicial proceedings will be suspended for the duration of the natural disaster for 90 days thereafter," said Novalić. federal prime minister.

The budget revision will ensure money, Novalić notes, for stabilizing the economy through the Stabilization Fund.

"It is a budget item managed by the Government, without the establishment of new legal entities and new employment. In addition, we are giving the Development Bank a deposit of KM 80 million for the establishment of a Guarantee Fund, as a measure of support for maintaining the liquidity of small and medium-sized enterprises," he said.

He explained that this approach is applied by almost all countries in the region and the European Union, because the Guarantee Fund allows for the money to multiply so that 400 million KM will be available for small and medium enterprises.

"There has been a lot of talk about a moratorium on loans in recent days. By the end of the day, we expect the Banking Agency and banks to come forward with proposals for measures to suspend loan repayment so that everything is made clear for the citizens and companies," he said.

He announced that all jobs that could be saved would be saved, and for those who, unfortunately, lose their jobs, the Federation of BiH will pay their benefits through the employment bureaus.

"We have the resources and we have a plan on how to overcome this crisis, thereby saving the most of our economy. I am sure that we will succeed," concluded the Prime Minister of the Federation of Bosnia and Herzegovina, Fadil Novalić.

(FENA) S. R.

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