Business owners in Stari Grad to have rents reduced for the next six months

SARAJEVO, (Patria) - At the proposal of the municipal mayor mr. Ibrahim Hadžibajrić, the Municipal Council of Stari Grad adopted the Decision on reducing rent payments for tenants of commercial buildings and spaces owned by the Municipality of Stari Grad for the next six months. All tenants of municipal commercial spaces will have their rents reduced by 30% until March 31, 2021. Banking, pharmacy, and bakery businesses are excluded from the decision. This decision was made with the aim of mitigating the negative consequences on the economy in Stari Grad, caused by the coronavirus pandemic, primarily to preserve the business operations of economic entities and jobs.

Since the beginning of the coronavirus pandemic, the municipal mayor has visited businesses in Stari Grad on several occasions, inquiring about their operations and the difficulties they face. In mid-September, accompanied by acting municipal attorney Enes Smajlović, assistant for economy Aldiana Kavazović, and by authorization of the assistant for civil protection Lejla Dizdarević, another visit was carried out. On that occasion, it was stated that the economy had suffered severe consequences, with revenues reduced by between 60 and 70%. The consequences of the coronavirus pandemic are increasing every day: business premises and hotels are closing, workers are being laid off, and trade is weakening day by day.

Mayor Hadžibajrić then announced: "At the next session of the Municipal Council, I will present a proposal to reduce all rents for commercial spaces by 30% from October 1 to March 31, 2021. We hope that after that we will overcome this crisis and that this scourge will stop, that normal work will begin, and borders will open," said Hadžibajrić.

The rent reduction will also mean a decrease in budget revenue by about one million convertible marks, while the previous exemption of tenants from rent (March, April, and May) cost about two million marks. However, as Mayor Hadžibajrić pointed out at the time, the budget exists for the citizens.

"We should not be saving budgets here. We must save the economy, citizens, help the elderly, the sick, and the socially vulnerable, and all our attention in the coming period will be focused on that, and the budget is a variable category and we should not prioritize it. Citizens are the priority. Higher levels of government should also think this way because they have all turned to saving budgets, which is wrong because budgets do not exist for themselves, but for the citizens. Citizens need budgets, budgets do not need citizens," stated Hadžibajrić. He announced that the economic situation will be monitored even after the six-month period, and that they will act in accordance with the needs.

Due to the consequences of the coronavirus pandemic, the Municipality of Stari Grad reduced rent amounts for tenants by 50% in March this year, and in April and May, they were 100% exempt.