The government's economic team will consider increasing the planned amount of subsidies for the minimum wage for closed businesses from 70 to 100 percent for April and May, as part of a new package of measures to help citizens and the economy in mitigating the economic consequences caused by the corona virus epidemic.
This was announced to "Vijesta" from several sources, after yesterday's meeting of members of the Collegium of the Assembly and Deputy Prime Minister Milutin Simović and Ministers of Finance and Economy Darko Radunović and Dragica Sekulić.
One of the calculations made in the Ministry of Finance is the increase from 70 to 90 percent of the minimum wage for employees, whose companies had to be closed due to health measures.
For closed businesses, the subsidy proposal is now 70 percent of the minimum wage, which is 155,5 euros, with exemption from paying taxes and contributions. The union demanded that the aid be tied to the average salary, instead of the minimum of 222 euros.
According to "Vijesti" information from the executive branch, it is being considered that for tourism, which is now within the scope of endangered activities with planned assistance of 50 percent of the gross minimum wage for each registered worker, the support will be 70 percent, that is, it will amount to 155,5 euros instead of the planned 111 per employee.
One of the options being considered is to extend the period in which the state would subsidize new employees until the end of the year, instead of the planned six months.
The Government unofficially replied to "Vijesta" that there is room to accept useful suggestions that overlap after several days of discussions with social partners, MPs and economists, and to make additional calculations about what they will supplement the proposed measures with.
They expect to adopt a second package of economic measures next week.
What it costs
The gross effect of the second package is now about 50 million euros, that is, about 30 million net cost for the state coffers, and if these two changes are finally accepted, the total gross effect of aid to citizens and the economy would be about 56 million in two months.
Damjanović says that he also asked for subsidies for March, and that they must be increased compared to the average salary. Nimanbegu calls for stronger measures for agriculture. Konjević pointed out that this is a far less generous package than in the countries of the region
The Minister of Economy recently announced that the first package of support, where tax and contribution obligations are postponed, amounts to around 100 million euros for three months.
"Vijesti" sources said that there were evaluations at the Collegium of the Assembly and that the Investment and Development Fund (IRF) is quite rigid with credit procedures in the current situation, that it must loosen the conditions for loans, be more flexible and faster.
In addition, they expect the banks to be more generous and not to reduce everything to a moratorium on loans.
Independent MP Aleksandar Damjanović said that he also asked for subsidies for March, and that subsidies must be increased in relation to average wages, while Genci Nimanbeg (Forca) said that stronger measures must be given for the agriculture sector.
Raško Konjević (SDP) said that he is not satisfied with the proposed package of the Government because it is significantly less than in the states of the region, and that he got the impression that they will accept to increase the wage subsidies.
In addition to subsidies for the minimum wage in closed and endangered industries, the new package for April and May also includes the payment of 70 percent of the minimum wage for workers in quarantine, isolation and those who took advantage of the opportunity to stay at home to look after children who are no older than 11 years.
The planned subsidies also include vulnerable activities, which include entrepreneurs, micro, small and medium-sized enterprises with up to 250 employees, in the amount of 50 percent of the minimum wage, as well as for electricity for socially vulnerable categories and payment of part of the bill for the vulnerable, payment of one-time assistance of 50 euros to the unemployed ...
The collegium of the Assembly announced yesterday that its members stated that in the conditions of reduced economic activity and uncertainty, the package of measures to help the economy, employees and the socially vulnerable population represents a solid framework prepared according to objective possibilities, that transparent implementation and regular notification of the Assembly is necessary.
Milutin Đukanović (DF) left the meeting because that alliance demanded that four MPs participate in the debate.
This was not allowed by the Speaker of the Parliament, Ivan Brajović, and after the polemic with Đukanović, the public broadcast of the meeting that the Collegium had previously agreed upon was abandoned.
Help the media because they are among the most vulnerable
The Association of Managers sent Prime Minister Duško Marković a proposal containing 20 measures to revive the economy and requested that the media for assistance be treated in the same category as the most vulnerable economic entities whose business is hampered. Associations ask for a precise definition of which activities are at risk.
"In cooperation with the IRF, provide micro-loans (up to 10.000 euros) to overcome the liquidity problem, which will be solved according to a shortened procedure. Companies that reported a profit in 2019, or had a profit in the average of the reported results in the last three years, could apply for these loans", are some of the proposals of that association.
The Chamber of Crafts announced that the economy should be provided with long-term loans for liquidity, not social assistance for employees.
"Write off parafiscal levies and all other obligations where there is no service for a counter-service so that we all share the burden equally. For example, write off flat-rate overhead costs and utility fees for closed businesses, abolish PAM for catering facilities that are not working or the tax for accessing shops from local roads", are the proposals of the Chamber of Crafts.
Milanović to banks: Moratorium with interest is not help for debtors
Croatian President Zoran Milanović called on banks in that country to offer a moratorium on loans for 12 months without interest calculation to workers, self-employed and micro-enterprises affected by the current crisis.
Milanović assessed on his Facebook page that what the banks are now offering is the usual moratorium at a time when the situation is normal and that the moratorium with the calculation of interest is no help at all, but a final increase in total credit obligations.
According to the decision of the Central Bank of Montenegro, the moratorium was approved for citizens and the economy for up to three months. Interest is calculated during the moratorium and charged after the end of the grace period by adding it to the balance of the debt.
The right to a moratorium has already been exercised by almost half of responsible citizens and businesses.
The SDP has submitted a draft law to the parliamentary procedure, with which they request that no interest be charged due to the moratorium - so that the banks would not make additional money, through an increase in installments, from those who, out of necessity, postpone the payment of their obligations.
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