Novalić: Law adopted, Government to pay contributions on minimum wage for the real sector

(Patria) - Following a session of the Government of the Federation of BiH, Prime Minister Fadil Novalić stated that the Law on Mitigating the Consequences of the Coronavirus on the Economy in this entity has been adopted.

Novalić said that the budget of the Federation of BiH will have to be rebalanced for the implementation of this law.

 “The rescue of the economy begins with this law. Its realization requires a budget rebalance. Every budget item is being reviewed. Ten measures are foreseen, and the most important is to preserve jobs. Contributions on the minimum wage will be paid for all workers in the real sector. The public and financial sectors are excluded from its application”, said Novalić.

In this process, special attention must be paid to entrepreneurs whose operations have been suspended.

"With this law, we are securing additional funds for cantons and municipalities through the reallocation of funds. Here, I primarily mean funds for public shelters, funds and fees for the conversion of agricultural land, Civil Protection, and everything that can be used to rescue the economy. All these funds must be redirected by cantons and municipalities to mitigate the pandemic," he stated.

“This is a budget item managed by the Government without establishing new legal entities and new employment. We are giving 90 million marks to the Development Bank to establish a sectoral fund as a measure to support the liquidity of small and medium-sized enterprises. All countries in the region are doing this. These funds will be multiplied”, said Novalić.

He added that by the end of the day, the Banking Agency and the banks will issue a clear explanation regarding loan deferrals, so that it is crystal clear to all citizens and companies who is eligible for it.

“We will save all jobs that we can. Unfortunately, for those who, despite everything, lose their jobs, the Federation will pay benefits from the Bureau. We have the resources and we have a plan on how to overcome this crisis by saving the largest part of our economy. I am sure that we will succeed in this”, said Novalić.