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2020-03-25  13:47

CIJ Serbia

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Croatia earmarks €4bn in crisis support

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The Croatian government has unveiled a package of measures worth around HRK 30 billion (€4bn) aimed at preserving production, employment and jobs, whose size and targeting will be adjusted according to the way the situation evolves. Croatian Prime Minister Andrej Plenkovic said the support was intended to help businesses survive the expanding health crisis caused by coronavirus. Speaking to journalists, he said entrepreneurs would be freed from paying income tax as well as health and social security contributions to the state for the next three months. This period could be extended if necessary, said Plenkovic. He also outlined a plan to provide minimum wage support to all employees who have been unable to work due to government measures to stem the pandemic in Croatia. The government will also provide low-interest rate loans to micro-companies to provide basic liquidity and working capital.

The second measure is aimed at preserving employment - financing 100 percent of the cost of the net minimum wage per employee. Third, it singled out a measure aimed at micro, small and medium-sized enterprises and related to loans for liquidity and working capital, with a grace period of 12 months and a very low interest rate.

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