Serbian Chamber of Commerce (SCC) President Marko Cadez has announced that a “serious package of support” will be prepared in ten days’ time for an economy suffering from the effects of an epidemic of the virus root.
“In an effort to assist companies in this, and to facilitate the country’s crisis management, SCC, based on the recommendations of representative companies and the opinions of reputable consulting firms, submitted to the Government its proposal of priority measures. In communication with the President of the Republic, the Government of Serbia, the competent ministries working out these measures to reach a serious support package in ten days that will be the best response to the needs of the private sector”, Chadez told Blic.
He added that “the battle ahead is a battle to preserve the liquidity of especially the most sensitive and numerous micro-SMEs and entrepreneurs and the fight to preserve jobs”.
“As successful as we are, how quickly we respond in a timely and proper manner today, how much we preserve our economic base, the more tomorrow we will have a firmer base and a greater chance of a relatively quick recovery”, Chadze said. He stated that after the measures adopted by the National Bank of Serbia, the measures of state interventions that are in the domain of fiscal policy are coming to the attention.
“Our, that is, the attitude of the economy is that there should be at least three sets of measures in this package: those that will bring tax relief to employers, then cover part of the costs from state funds to compensate employees (especially liabilities to employees who, due to the decrease in the volume of jobs, do not working for the sick) as well as favorable loans for the liquidity of the companies”, Chadez said.
He said that the formulation of these measures is aimed at preserving as many companies as possible, that as many factories as possible continue to operate and that fewer people lose their jobs.
“The burden of this crisis will have to be borne by everyone – both the state and the banks and the economy and eventually it will be felt by the employees as well. The global economic crisis triggered by the coronavirus is significantly different from the financial crisis of 2008. This time, the banking sector and major economic systems and in the world they are still holding good – they are also liquid while preserving the liquidity of banks and large companies, the problem, which we are aiming to solve, is actually in the backyard of small business”, said Chadez.
He added that he was discussing with the Banking Association and the Government the creation of an adequate corporate loan guarantee scheme, so that both banks and the state would jointly take over and share a reasonable risk of supporting and lending to companies. Asked which sectors are now suffering the most damage, he said there is no such company and industry that directly or indirectly, has more or less not felt the crisis.
“Tourism, whose business in the world and here in the country is completely stopped, catering, passenger transport and small service businesses, was the first to hit. So far, with the spread of contagion and the introduction of emergency measures in all countries to protect its borders and population, it has started it is significant that the manufacturing industry also suffers”, Chadez said.
He said that the biggest support at the moment will be able to count those who suffered the biggest shock in the first wave, who have no choice or the ability to manage themselves, whose business has completely stopped the epidemic, such as tourism and services that are not working now, but also other affected sectors that depend on the continued functioning of the entire economy.
Chadez urged businessmen, no matter how difficult it may be today, to show maximum solidarity and community, both to the community and to employees and to one another, to the best of their ability, to maintain business ties in order to overcome current problems and recover as quickly as possible in the coming months, N1 reports.
