Smailbegović: BiH's chance is in the post-corona era, let's prepare on time

SARAJEVO, (Patria) - I would appeal for the law on mitigating the consequences of the pandemic on the economy to be passed as soon as possible, said the president of the Employers' Association of FBiH Adnan Smailbegović at a press conference today.

“One positive thing is that the law covers a wide range of companies. Another good thing is that only one filter has been incorporated, namely a revenue drop of 20 percent or more. As an Association, we have given our remarks to the representatives. One remark is to refine the criteria. We think that in addition to the average of January and February, we should also include the average of those months in the previous year. The next remark related to the fiscal capacity itself, i.e., contributions on minimum wages. Many companies with a significant drop in turnover cannot survive solely by subsidizing contributions,” Smailbegović pointed out and called on the cantons to get involved. 

According to him, he thinks it is too late for the third remark, which relates to subsidies for the second half of March. 

“I think the end of the coronavirus is in sight. We see that Europe is slowly opening up. The government should already be preparing for the situation when this is over and when the economy needs to move upwards. Many countries in Europe will probably change their views on global supply chains related to Asia and other countries, and I think BiH should try to seize the opportunity, improve the business environment, and enter the post-corona period as prepared as possible,” Smailbegović emphasized. 

When asked if mass layoffs are a solution, Smailbegović said that it is by no means a solution. 

“If we look at the total drop in tax revenue, I estimate that the drop in the number of employees is still at an expected level,” Smailbegović said. 

Responding about complicated procedures for loan moratoriums, Smailbegović says they are in contact with banks and the Banking Agency and said they will appeal to banks if they notice the situation being dragged out.