CONSEQUENCES OF COVID 19 FBiH Government allocated 90 million KM for the most endangered sectors of the economy

SARAJEVO, (Patria) - The Government of the Federation of BiH, at today's session in Sarajevo, adopted the Decree on intervention measures to support endangered sectors of the economy of FBiH in the circumstances of the COVID-19 pandemic. The general goal is to provide liquidity support to the most endangered sectors/activities, preserve jobs, and provide urgently needed support and maintain competitiveness in export-oriented sectors.

Total financial resources for the implementation of this decree have been secured in the Budget of FBiH for 2020 in the amount of 90,000,000 KM and distributed to the departments of the relevant ministries. Thus, 30,000,000 KM was allocated to the Federal Ministry of Environment and Tourism for assistance to the tourism and hospitality sector, 20,000,000 KM to the Federal Ministry of Transport and Communications for assistance to this sector, 10,000,000 KM to the Federal Ministry of Agriculture, Water Management and Forestry for assistance to agriculture and the food industry, and 30,000,000 KM to the Federal Ministry of Energy, Mining and Industry for assistance to export-oriented companies.

Financial assistance to beneficiaries is awarded based on general conditions and specific criteria for each sector within the relevant ministries by the end of the year. Ministries are obliged to publish a public call for submitting applications for awarding financial assistance seven days after the Decree enters into force. If a beneficiary operates in multiple sectors, they can only receive assistance from one ministry.

Beneficiaries of assistance cannot reduce the number of employees until 31.12.2020 compared to the number of employees on 30.9.2020, except for beneficiaries in the field of airports and railway transport, and public postal operators. Exceptionally, beneficiaries to whom financial assistance is awarded without a public call (airports, railways, and public postal operators) submit a request for awarding financial assistance to the relevant ministry within 15 days of the Decree entering into force.

Assistance may be awarded to a beneficiary based in the territory of FBiH, who had a drop in taxable turnover of at least 40 percent in the period from 1.4. to 30.9.2020 compared to the same period in 2019, or is an exporter who achieved exports exceeding 30 percent of total turnover last year. This does not apply to spas and health resorts, beneficiaries receiving direct financial assistance in accordance with this decree, and those established after 30.6.2019.

The amount of financial assistance per beneficiary must not exceed 700,000 KM for beneficiaries from the industry sector, tourism and hospitality sector, agriculture and food industry sector, and passenger road transport sector. In case the total applications for awarding assistance from qualified beneficiaries by individual branches are less than the available funds, the surplus funds from that branch can be allocated to another. Funds can be used exclusively for maintaining and improving liquidity, maintaining the competitiveness of export-oriented industrial branches, as well as implementing initiated infrastructure projects by postal operators, and modernizing airports.

Funds allocated for maintaining liquidity are intended exclusively for payments of gross wages and operating costs for the period from 1.7.2020 to 31.12.2020, including payment of fees for the implementation of expert supervision of airport operators and approval of projects by regulators. Today, the Government also adopted decisions approving the allocation of funds for four federal ministries in the amounts determined by the Decree. Let us recall, the Government previously committed to allocating 10,000,000 KM for assistance to the healthcare sector. These funds are not covered by this Decree, as the Government will make a decision on them later.