Milićević: Subordinate acts will be passed to ensure reprogramming of credit obligations

SARAJEVO, (Patira) - Federal Minister of Health Vjekoslav Mandić said at today's press conference that the Government adopted conclusions on the occurrence of coronavirus.

"We in the Crisis Staff of the FBiH can now make faster and simpler decisions. The most helpful of the conclusions will be changing Article 10 of the Law on Public Procurement, as it will exempt healthcare institutions from this article and enable them to procure resources," Mandić added.

Minister of Finance Jelka Milićević said that this is the Federation's response to specific conditions and that they are fighting for health, the economy, and the future today.

"We are small, and therefore today we can rightly say that what we are trying to do for the economy is a huge step. We have invited all institutions to create a set of measures to protect jobs, taxpayers, and the revenues of the FBiH. The first to be affected is the Banking Agency, which has been given many tasks. Primarily, the banking sector must be protected as the only institution that directly affects the fiscal stability and liquidity of the FBiH," said Milićević.

She announced that subordinate acts will be passed to ensure the reprogramming of credit obligations of business entities and citizens without consequences for banks, taxpayers, and citizens.

"The second set of activities is related to the tax system, and the Tax Administration has the most activities related to reprogramming, and they will be available regarding the reprogramming of obligations, regarding the reduction of profit tax obligations for business in 2019. We have recognized a category that is not small, and that is people who engage in lump-sum businesses, and what we can do is exempt them by 50 percent until December 31, 2020," says Milićević.

She points out the formation of a guarantee fund as the most extensive task.

"The guarantee fund will serve as a guarantee for business entities to obtain loans from commercial banks. There is money in commercial banks, only the conditions for creditworthiness must be ensured. The second part is to secure a credit line with international organizations for dedicated activities, with favorable repayment periods and interest rates," Milićević stated.

She emphasized that the consequences will be felt for two to three years and that legislation will have to be continuously harmonized.