To manage and address the COVID-19 crisis, the Croatian Government has, like many Member States, started adopting measures to help the economy weather out the storm. Just today Prime Minister Andrej Plenković announced three new measures for assisting private businesses hurt by the economic downturn – Interest free tax deferral, no income tax, profit tax and health and pension contributions. The measure has been calibrated to three months with the possibility of extension for another three months. The second measure will preserve jobs and finance the cost of paying the minimum wage. The third measure is aimed at micro and small businesses and relates to liquidity loans of up to EUR 25 000.
So far 66 measures have been adopted which encompass the protection of the labour market, taxation and loans, consumer goods and tourism and agriculture. EuroNavigator has analysed the measures and we bring you the highlights, organised according to management authority:
MINISTRY OF FINANCE
Measure of introduction of Stand still, specifically suspension of the execution of all measures of enforced collection against all debtors (legal or natural persons) within a period of three months.
Liquidity and working capital loans (salaries and working capital excluding liabilities to financial institutions) up to three years.
MINISTRY OF ECONOMY, ENTREPRENEURSHIP AND CRAFTS
Introducing an additional grace period for the obligation to preserve jobs without losing the right to support measures related to the realization of investment projects implemented in accordance with the Investment Promotion Act.
Establishment of a new financial instrument Micro Rural Development Loan for Working Capital (faster processing, grace period, lower interest rate).
Contra guarantee for 50% of principal for working capital of tourism loans (interest rate 0.5% -0.75% -1.0%).
MINISTRY OF LABOR AND PENSION SYSTEM
Aid for preserving jobs in coronavirus affected sectors.
Adopting the Decision on Exceptional Product Price Control Measures to Protect Citizens from the Uncontrolled Increase in the Price of Individual Products of Strategic Importance.
Provisional measure suspensions of self-employment and employment grants with a view to securing additional funding for job retention in coronavirus-affected sectors.
Unconditional extension of the duration of a project by three months – for all projects co-financed by the Operational Program Effective Human Resources which are under implementation and with a deadline for the months March, April and May 2020.
MINISTRY OF REGIONAL DEVELOPMENT AND EU FUNDS
Unconditional extension of the duration of the project with a deadline of March, April and May 2020, as well as a 90-day repayment obligation with a maturity of March, April and May – for all projects co-financed by the Competitiveness and Cohesion OP implementation.
Establishment of a new financial instrument “COVID-19 loans” for working capital for small and medium-sized enterprises.
MINISTRY OF TOURISM
Postponement of payment of tourist membership dues for economic operators and private renters as well as payment of tourist fees for private renters (flat-rate tax).
Aid for programs for financing working capital and improving the liquidity of vulnerable tourism entrepreneurs.
MINISTRY OF AGRICULTURE
Implementation of an additional flexibility mechanism between funds to increase production-related payments or introduce intervention measures (Agricultural Program) with the prior approval of the European Commission.
Assistance to the agricultural sector by limiting traffic and increasing handling costs (proposing a new government program and low value grants).
Delay of the deadline for contractual obligations to beneficiaries of all investment measures of the Rural Development Program.
Redistribution through the Operational Program for Financing of Packaging in the amount of EUR 656 700.
MINISTRY OF THE SEA, TRANSPORT AND INFRASTRUCTURE
Temporary Suspension of the Charge of Extraordinary Transportation Permits on Public Roads until 1 June 2020.
Postponement of the application of the new Ordinance on boats and yachts in respect of equipment requirements.
Recommendation to port authorities to delay the payment of a fixed part of concession fees and fees for the use of the operational shore at ports open to public traffic.
For an in-depth analysis of existing and upcoming measures, get in touch: firstname.lastname@example.org