AmCham: Ensure liquidity, maintain supply chain

ZAGREB, March 31 (Croatia Sun News) – Maintaining liquidity for enterprises, retaining jobs, ensuring the supply chain and tax reliefs are some of the measures that are urgently needed to assist the economy in the wake of the coronavirus epidemic, the American Chamber of Commerce in Croatia (AmCham) stated.

“We believe that in this situation it is essential to maintain liquidity for businesses, retain employment and jobs, ensure the supply chain for enterprises, stimulate consumption after the crisis and introduce tax relief,” AmCham’s director for Croatia, Andrea Doko Jelusic, said.

AmCham has prepared measures that are in line with the government’s measures and good practices in other countries.

AmCham’s measures include the introduction of state loans and guarantees through the Croatian Bank for Reconstruction and Development (HBOR) (in the amount of about 10% of GDP, similar to experiences in other countries), the establishment of funds for the industrial sectors affected the most by the crisis (e.g. tourism), securing funds for SMEs whose liquidity has been affected through interest-free loans with a two-year repayment period (based on the example of the Czech Republic).

In order to keep jobs, AmCham proposes shorter working hours, obligatory annual leave for the duration of the crisis, subsidised wages in the private sector (Austrian, Slovenian models), and writing off income tax and contributions during the crisis.

AmCham is already working on measures that could ease the negative impact on the economy and assist enterprises to better weather the coming period.

Considering the current circumstances and the disaster that struck Zagreb, AmCham also proposes that a decision be made to exempt deliveries to hospitals and scientific and educational institutions from VAT, which would motivate entrepreneurs to make donations more readily as support during and after the crisis as well as contributing to reconstruction efforts, said Doko Jelusic.

(Hina)

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