Negative impacts of coronavirus and economic measures in Croatia
Declared pandemic of coronavirus has created a set of negative side effects on economy. In a special meeting held on 17th March, the Croatian government adopted a proposal for measures to help the economy involving 63 different measures which aim is the preserve jobs and secure salaries.
The first set of measures refer to those who are already affected or will be affected by the consequences of an epidemic. In the text below, we have pointed out important measures from individual resorted ministries, which are subject of the proposal:
1) Ministry of finance
- postponement without interests or payment of public benefits through installments, namely postponement of payment of income tax and corporate tax and salary contribution to three months, with the possibility of extending to three months and following by debt instalments to be paid in 24 months;
- support for the preservation of jobs in sectors/companies which will be affected by the coronavirus in such a way that 100% of the cost of the minimum net salary will be financed, provided that employers did not terminate employment contracts. HZZO will make payment towards workers in the amount of 3.250,00 kn, and employers can pay off part of the salary, for which they are encouraged through measures like postponement of payment of health, pension and tax benefits to the state;
- commercial bank measures:
- introduction of Stand still-a i.e. suspension of all enforcement measures against all debtors (legal ornatural persons) for a period of three months (for that period regular interest or statutory interest is calculated) and
- -liquidity and working capital credits (place and workingcapital other than liabilities to financial institutions) with due up to three years.
2) The ministry of labor and pension system
- support for the preservation of workplaces in the sectors affected by coronavirus;
- temporary measure on the suspension of support for self-employment and employment with a goal to ensure additional resources for the preservation of jobs in the sectors affected by the coronavirus;
- extended duration of the measure for permanent seasonal workers;
- enabling users of EU supports with a possibility of suspension or delay of implementation of projects, postponement of return payments and accepting reduced planned indicators of projects due to objective new circumstances;
- postponement of the payment of the financial compensation for all employers of the quota for the employment of disabled persons.
3) The Ministry of Economy, Entrepreneurship and Crafts
- introduction of an additional grace period for the obligation to preserve jobs without losing the right to support measures relating to the realization of investment projects implemented under the Act on support of investments.
4) Ministry of Culture
- suspension of commemorative rentals as long as the special circumstances in Croatia are due to the pandemic of the coronavirus.
5)The Ministry of the Sea, Transport and Infrastructure
- temporary postponement of seasonal increase of tolls by 10% for IA, I and II groups for the period from 15th June to 15th September;
- temporary prolongation of the seasonal “winter” schedule of the ENC discounts (which expires on 31 March) until 1st June 2020;
- additional 7% discount for EURO VI vehicles for vehicles III and IV groups using ENC by subsequent payment by credit / oil credit card, over a year.