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AmCham's Recommendations for Economic Relief
March 31, 2020

AmCham's Recommendations for Economic Relief

With the aim of contributing to economic stability, job preservation and ensuring financial liquidity of all companies doing business in Croatia, AmCham has published a proposal of additional measures to provide economic relief to companies facing difficulties as a result of the COVID-19 outbreak.

AnCham's reccomendations are aimed at maintaining the liquidity of companies, securing employment, i.e. jobs, ensuring the supply chain, stimulating post-crisis consumption and tax reliefs. The measures proposed by AmCham were designed in line with the measures already adopted by the Croatian Government or they were based on the economic relief measures adopted by other countries in light of the coronavirus outbreak.

As for measures for ensuring liquidity, AmCham proposes, amongst other, establishing state loans and HBOR (Croatian Bank for Reconstruction and Development) guarantees (in the amount of ca. 10% of the GDP in accordance with the experience of other countries); establishing financial funds for those economic sectors primarily affected by the crisis (e.g. tourism); granting new liquidity loans to companies with impaired liquidity with the obligation of repayment within 2 years at a 0% interest rate (like the Czech Republic).

Regarding measures for preserving job positions, they refer to introduction of a shorter working hours model; implementing obligatory vacation time during the crisis; subsidizing employee salaries in the private sector (like Austria and Slovenia) and implementation of income tax and tax contribution write-offs during the period of coronavirus outbreak.

AmCham representatives presented the recommendations for economic relief to the Ministry of Labour and Pension System and discussed further plans of the Government and Ministry aimed at securing employment. 

AmCham's Recommendations for Economic Relief are available following the link.

 

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