24 July 2020
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[UPDATED] Serbia Unleashes a Second Package of Economic Measures to Fight Covid-19

On July 30, the Government of Serbia adopted a decision on direct payments and tax benefits for the private sector.  This decision is part of the Legal framework for the implementation of the Second package of economic measures to mitigate the economic effects of the Covid-19 pandemic (The Second Package).

Amounting to RSD 66 billion in size, the Second Package provides direct payments and tax benefits to the private sector, focusing on entrepreneurs and micro, small, and medium-sized enterprises (MSMEs).   It consists of:

  • Direct financial aid:

Direct aid in the amount of 60% of minimum wage per employee.  This measure will last for two months and will be open to entrepreneurs and MSMEs.  Employees should receive the first payment until August 10, while the second payment is expected in September.

  • Fiscal measures:

Deferral of payments of employment tax and social contributions, for one month.

Moreover, on July 27, 2020, the National Bank of Serbia decided to approve a moratorium on loan repayments for another two months.

As the President of the Serbian Chamber of Commerce, Marko Čadež announced, sector-specific measures are expected to come next.   According to Čadež, the sectors most affected by the crisis, such as tourism and transport, may expect to receive aid in the following period.

The Second package is yet another set of measures to provide direct grants and fiscal benefits.  In March this year, the Serbian Government adopted a EUR 5.1 billion program of support measures to shore up liquidity during the economic crisis caused by Covid-19.

For more detailed information on measures aiming to mitigate the effects of Covid-19 please see more at https://www.coronavirus.geciclaw.com/