Date: 29/04/2020

Legal framework for the implementation of economic relief measures

By adopting Decrees that regulate in more detail the way of exercising rights under the Economic Measures Program to reduce the negative effects caused by the Covid-19 virus pandemic and support the economy, the Government of Serbia has rounded up the legal framework for the implementation of economic measures.

On April 16, Guarantee Scheme Regulation was adopted to provide two billion euros in loans to all entrepreneurs, micro, small and medium-sized enterprises, which will be available from April 21. Regulation establishing a guarantee scheme as a measure of economic support for the mitigation of the effects of the COVID-19 disease pandemic caused by the SARS-CoV-2 virus.

The Minister of Finance has adopted the Rulebook on the content of the form in which information on persons for whom a large legal entity is entitled to payment of grants is presented. Large legal entities will submit the aforementioned form to the authorized organizational units of the Tax Administration and Treasury Administration, thus providing information on persons for which they are entitled to the payment of grants referred to in Article 10 of the Decree on Fiscal Benefits and Direct Giving to Private Sector Companies and Financial Assistance to Citizens to mitigate the economic consequences of COVID-19.

The Government also adopted a Decree on the program of financial aid for enterprises to maintain liquidity and working capital in difficult economic conditions due to the COVID-19 pandemic. Funds in the amount of RSD 24,000,000,000 will be provided for the implementation of the Program, while funds from the Development Fund of the Republic of Serbia will be used as well.

Decree on the Procedure for Issue of Debt Securities regulates the simplified procedure for issuing securities in the territory of the Republic of Serbia, while the Decree on the conditions and criteria for compliance of state aid to eliminate adverse consequences of disease COVID-19 more closely regulates the coordination criteria and conditions for state aid, as well as cumulation and record keeping of state aid.

Decree on Conditions and Criteria for Compliance of State Aid to Eliminate Serious Disruption in the Economy Caused by Disease COVID-19 lays down the conditions for granting state aid through market participants' liquidity instruments such as subsidies, debt relief, tax credits, interest rate subsidies for loans, loan guarantees under more favorable terms than on the market, tax deferrals and/or compulsory social security contributions, employee wage subsidies and short-term export insurance.