News in English     | 16.10.2020. 15:08 |

Novalić: We want to preserve jobs with the Decree on emergency measures

FENA Senka Trgovčević

SARAJEVO, October 16 (FENA) - The Prime Minister of the Federation of BiH, Fadil Novalić, stated that the FBiH Government today passed the Decree on emergency measures to support endangered sectors of the FBiH economy due to the COVID-19 pandemic. The Government of FBiH provided 90,000,000 KM in the FBiH budget for the implementation of these measures and allocated to the departments of line ministries.

“Thus, 30,000.000 KM has been allocated to the FBiH Ministry of Environment and Tourism to help the tourism and hospitality sector, the FBiH Ministry of Transport and Communications 20,000,000 KM, the FBiH Ministry of Agriculture, Water Management and Forestry 10,000,000 KM to help agriculture and food industry, and the FBiH Ministry of Energy, Mining and Industry 30,000,000 KM to help export companies,” said Novalić after the Government session.

He pointed out that the Decree intends to provide liquidity support to the most vulnerable sectors / activities, preservation of jobs, and providing urgently needed support and maintaining competitiveness in export-oriented sectors.

“We have clear indicators of which areas in economic and health terms have suffered the most. These include transport and communications, tourism, the export industry, agriculture, which simply will not be able to survive the winter without our support, and that is, after all, the role of the Government,” said Novalić.

He added that the conditions are set in the Decree, which are the preservation of jobs and it is defined that 40 percent of the potential of these 90,000,000 KM goes to job insurance. This means that if tourism has 30,000,000 KM, then 12,000,000 KM is reserved for preserving jobs, and the rest for current operations.

Financial assistance to beneficiaries will be granted on the basis of general conditions and specific criteria for each sector within the line ministries by the end of the year. Ministries are obliged to launch a public call for applications for financial assistance seven days after the entry into force of the Regulation. If the beneficiary operates in more than one sector, the right to assistance can be exercised only by one ministry.

Beneficiaries will not be able to reduce the number of employees until 31 December 2020 compared to the number of employees on 30 September 2020, except for beneficiaries in the field of airport and railway transport, and public postal operators. Exceptionally, beneficiaries to whom financial assistance is granted without a public call (airports, railways and public postal operators) submit a request for financial assistance to the relevant ministry within 15 days of the entry into force of the Decree.

It is stipulated that the assistance will be granted to a beneficiary who has its registered office in the territory of FBiH, and who had a drop in taxable turnover of at least 40 percent in the period from April 1 to September 30, 2020 compared to the same period in 2019 or an exporter that accounted for more than 30 percent of total turnover last year.

The amount of financial assistance to one user may not exceed the amount of 700,000 KM, for users from the industry sector, tourism and hospitality sector, agriculture and food industry sector and the road passenger transport sector.

The funds can be used exclusively to maintain and improve liquidity, maintain the competitiveness of export-oriented industries, as well as the implementation of initiated infrastructure projects by postal operators, and in the modernization of airports.

(FENA) A. B.

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