149 Million KM for the Economy in Sarajevo Canton

(Patria) - The Government of Sarajevo Canton, at today's extraordinary session, adopted amendments to the Program of short-term and medium-term measures of significance for mitigating the negative economic consequences on the economy in Sarajevo Canton caused by the coronavirus pandemic.

Minister of Economy Adnan Delić reminded on this occasion that the Assembly of Sarajevo Canton recently adopted the Law on Mitigating Negative Economic Consequences and Savings in Sarajevo Canton.

"This law, among other things, provides the legal infrastructure: for financing all or part of the minimum monthly net salary at the FBiH level for months in 2021 for activities whose work is significantly hindered due to the consequences caused by the coronavirus pandemic, in accordance with the secured funds, and for the possibility of financing related taxes and contributions on the minimum monthly net salary at the FBiH level for entities whose activities are prohibited by a decision of the KS Government, for the duration of this prohibition," explained Minister Delić.

He added that the Law stipulates that the KS Government adopts Amendments to the Program of short-term and medium-term measures of significance for mitigating the negative economic consequences on the economy in KS caused by the coronavirus, as a document that programs the structure of the implementation of the relevant financing.

"In order to ensure analytical and transparent preparation of this document, the Ministry of Economy of KS engaged an interdepartmental Commission, with the participation of the Advisory Body. Based on this, at the proposal of the Ministry of Economy of KS, the KS Government considered and adopted this program document at today's extraordinary session," said Minister Delić.

He also emphasized that within these program financing, the following entities are basically recognized: business entities based in KS, with the caveat that they cannot exercise this right for business units within their structure located outside the KS area, business entities based outside KS in the FBiH area, which have business units within their structure located in the KS area, with the caveat that they can only exercise this right for these business units, business entities - individuals based in the KS area who independently perform registered business activities as their primary or additional occupation, and pay income tax in a lump sum amount, the aforementioned business entities with startup status, founded/registered after 01.12.2019, and business entities whose activities are prohibited by a decision of the KS Government, thereby meeting the basic condition for the possibility of financing related taxes and contributions on the minimum monthly net salary at the FBiH level.

"This program document precisely stipulates the necessary conditions that business entities must meet to be eligible for the respective financing. It is important to note that the difficulty of performing a certain activity due to the coronavirus pandemic will be assessed through the indicator of the business entity's turnover decline. Also, it should be noted that other important conditions for eligibility for financing are programmatically stipulated with the aim of maintaining the employment level, timely fulfillment of public revenue payment obligations, etc.," stated Minister Delić.

Given that this program document has been adopted, Minister Delić said that the conditions have been met for the KS Government to adopt legal acts, namely the relevant decrees and decisions, which regulate the procedures for the relevant financing, the adoption of which is expected at the end of next week.

He also added that with the adoption of these legal acts, the prerequisites will be created for the Ministry of Economy of KS to publish public calls for the submission of applications from business entities that meet the conditions for exercising the relevant right, and these will be published as soon as possible.

"This program document expresses the total amount of approx. 149 million KM for the implementation of measures contained in this document, and the structure of this amount is as follows:

- 21,000,000 KM - Direct support to the economy for maintaining the employment level and preserving jobs;

- 3,500,000 KM - Relief for the economy to support liquidity by exempting from payment of fiscal and parafiscal charges;

- 90,000,000 KM - Credit funds for small economy entities in credit lines with subsidized interest rates;

- 3,490,000 KM - Incentive grant funds for small economy entities;

- 6,100,000 KM - Support for agriculture; and

- 25,856,427 KM - Social policy measures," emphasized Minister Delić.

The document with the amendments to the aforementioned program will also be published in the attachment to this information.