The Serbian government has adopted a legal framework for a second package of economic assistance to mitigate the effects of the coronavirus epidemic. Businessmen who have already used the measures will receive help automatically and do not have to apply again. Companies established until July 20 are also entitled to help. The package is worth 550 million euros, and each employee will receive 155 euros in August and September.
Additional oxygen is needed not only by co-patients but also by businessmen. That is why the new package of measures provided 60 percent of the minimum wage for employees in August and September, and companies will get an additional month of deferred payment of taxes and contributions on wages.
“It is also planned that companies from the category of large legal entities will receive state assistance of 50 percent of the minimum wage for those workers who had a decision to stop working, and those companies already have a regular procedure to apply by the 15th of the month, in order to exercise the right to direct benefits,” said Finance Minister Sinisa Mali.
Recall, the previous condition for receiving assistance was that companies do not lay off more than 10 percent of employees by the end of October and postpone taxes and contributions with debt settlement from February in 24 installments.
Experts believe that the battle to maintain employment is actually a crucial measure for preserving the economy, because it was not calculated that the pandemic would be so tough.
“So, for new employees, both for those with secondary education and for those with higher education, in a certain period of nine months to support their employment with 170 euros for secondary education and 200 euros for higher education,” says Zoran Grubisic, professor at Belgrade banking academy.
This time, the measures are more targeted, thus stimulating employment without spending too much money and without exceeding the level of public debt over 60 percent of GDP.
“During the visit of the IMF, it is planned on their part that Serbia will record a decline of eight percent in the second quarter. At this moment, it is certain that the decline will be lower by about six, maybe even lower, so fiscal space is open for such measures,” says Ivan Nikolic, associate of the Economic Institute.
The National Bank especially contributed to the stability of the dinar exchange rate, ie to the preservation of investor confidence, because it intervened monthly by selling around 300 million euros, a total of one billion and 200 million euros since March. In addition, individuals and companies have been provided with a moratorium on loan payments for another two months, RTS reports.
