Government adopted second set of measures to mitigate COVID-19 consequences. The purpose is to provide support to the business sector, keep jobs, maintain social stability and help the citizens affected by the coronavirus (COVID-19) crisis.
Support to employers to keep jobs – Denar 14,500 per employee for wage payment for the months of April and May.
Terms and conditions to be eligible to use this measure:
- no dividends, bonuses, annual rewards, performance bonuses to be paid,
- to experience at least 30% reduction of revenues compared to the average from the last year/seasonal average,
- average of the portion of highest net wages of 10% of the number of employees not to exceed Denar 120,000 per employee on monthly basis for the month for which the support is requested.
In order to apply for the support:
1. application is to be filled in – which the PRO will announce soon, together with a statement that the terms and conditions are met
2. application to be submitted through the PRO’s e-tax system by the 5th in the current month for the previous month
3. PRO approves the application within 3 days
- financial support does not apply to those employees who received net wage higher than Denar 39,900 in December 2019, January and February 2020,
- employers who will use this measure are obliged to keep the same number of employees at the moment of applying by September 2020,
- employers reporting loss for 2020 will not repay the received financial support. As for the others, the repayment of the financial support is limited to up to 50% of the profit before tax increased by taxable expenditures.
Support to athletes – Denar 14,500 for April and May
The Government will provide minimum wage in the amount of Denar 14,500 for April and May for all athletes employed with sports associations.
Support to artists – Denar 14,500 for April and May
Minimum wage for April and May will be provided for self-employed artists, as well as contributions, through the Ministry of Culture.
Pecuniary allowance for the citizens who lost their job (50% of the average wage of the employee)
The state will pay a pecuniary allowance – monthly wage to the citizens who lost their jobs due to the crisis, each month in the amount of 50%, up to 80% at the most, of the employee’s average monthly net wage in the country for the last 24 months, i.e. pursuant to Article 68 of the Law on Employment and Insurance in case of Unemployment.
Solidarity and savings: all elected and appointed officials will receive minimum wage for April and May
All elected and appointed officials at state and local level will receive minimum net wage (as of December 2019 inclusive) in the amount of Denar 14,500 for the months of April and May 2020.
Abolished remuneration for the members of Boards of Directors and Supervisory Boards and Commissions during the crisis
Presidents and members of Boards of Directors and Supervisory Boards of public institutions of the executive power and the local authorities, as well as presidents and members of municipal councils, and presidents and members of commissions established by the executive power and the local authorities, at the same time employed elsewhere, will receive no remuneration during the crisis. This Decision shall be in force until the Government adopts a decision terminating it.
Care for persons in the informal economy – Denar 7,000 per household for persons without any work engagement
Persons who are left with no work engagement or were part of the informal economy are provided fast entry in the social protection system for April and May. They will receive in average Denar 7,000 per household.
Extension of loan repayment at the banks for 3 to 6 months
Banks will offer the legal entities more favourable terms and conditions, such as prolonging the loan repayment, reprogramming, grace period, more favourable interest rate and similar, while the natural persons will be offered extension of installment payments from 3 to 6 months. Each bank will have the decision adopted by its Supervisory Boards and will inform their clients thereof, while part of the banks have already adopted decisions for 6-month extension.
Reduction of the amount of loan installments and costs at financial companies and leasing companies
- Loans extended to natural persons to be rescheduled by reducing the amount of the installments in the coming three months by 70% of the installment and by extending the repayment period by at least 90 days of maturity.
- As for the legal entities, decisions will be made on case-by-case basis, by proposing the most appropriate benefits in line with the companies’ needs.
- New loan agreements to be approved with 3-month grace period.
- By reducing the penalty interest rate, rate of total costs, which amounted to 51% until now, will be reduced to 31%, while other costs the companies charge are limited to 20% of the loan approved.
- As for those able to continue paying the installments in full, they will be provided more favourable terms and conditions.
EUR 8 million – new interest-free credit line in the amount of EUR 90,000 depending on the number of employees
Development Bank of North Macedonia, in addition to EUR 5.7 million, will also make available interest-free loans in the amount of EUR 8 million to micro, small- and medium-sized companies, depending on their number of employees.
Maximum loan amount to be approved to the borrower may not exceed Denar 5,535,000 (EUR 90,000), while the minimum loan amount may not be less than Denar 184,500 (EUR 3,000). A company may be extended a loan in the amount of:
Example: Should a company employ 10 persons: Denar 14,500 x 10 x 3 months = interest-free loan in the amount of Denar 435,000
- 3-year repayment period, including a grace period of up to 12 months, intended for working capital. repayments on quarterly basis.
- 0% interest and no loan administering costs.
EUR 50 million loans under very favourable terms and conditions for the companies from the Development Bank, made available via the commercial banks
Development Bank will offer the companies loans under very favourable terms and conditions via the commercial banks. Ministry of Finance will subsidize the interest rate, so as for the Development Bank to offer the loans with 0% interest rate to the commercial banks – all to the end of making loans under very favourable terms and conditions, with around 1.5% interest rate, available to the final beneficiaries.
Establishment of COVID-19 SOLIDARITY FUND
Special earmarked account will be opened at the Government for donations from legal entities and natural persons that will be able and willing to donate funds to be used for help and support in managing the crisis caused by the spread of COVID-19.
Ban on opening bankruptcy proceedings
Execution Law is halted
Enforcement of the Law on Execution is suspended, i.e. halted, by end-June. Execution officers will be obliged to stop undertaking any execution-related activities.
Employers of debtors and payment operations agents are obliged to stop acting upon issued orders by the execution officers by end-June. This does not apply only to cases where funds are already paid to the execution officers’ accounts, who can transfer the funds to the creditors, as well as in cases of alimony to single parents.
Exemption of paying rentals for the users of social flats
All users of social flats will be exempt from paying the rentals. In addition, citizen and companies having rented business premises from the Public Enterprises for Housing and Business Premises are also exempt from paying the rentals.
Mandatory taking of first part of the annual leave for 2020 in the public sector
First part of the 2020 annual leave, i.e. remaining part of the 2019 annual leave, is mandatory to be taken by 31st May 2020 inclusive.