Corona Virus
“We are following things and watching to see what we can do,” said Croatian Minister of Finance Zdravko Maric in response to being asked about possible measures to soften losses caused by the coronavirus.
Italy is Croatia’s biggest export market, even bigger than Germany, were Croatian companies exported HRK14.8bn in products in 2019. Imports were twice as high at HRK28.8bn, meaning that there will be losses, Vecernji List said in a report carried by SEEBiz.
Economist Zeljko Lovrincevic believes that many businesses will seek state assistance, which the Cabinet is prepared for, but that they will also behave responsibly so as not to jeopardize the country’s macroeconomic stability. For starters, a vis major should be declared so that companies won’t have to pay damages for delayed or cancelled deals.
Lovrincevic predicts that in an optimistic scenario, the budget deficit could pack on an additional HRK11-12bn, as a result of lower revenues and added costs related to the epidemic.
Italy has already decided to “inject” its economy and health care system with EUR11bn. Slovenia is preparing measures worth EUR1bn, and it is a question of time when Croatia will pass measures most likely through HBOR or the employment bureau, to facilitate loan payments and keep employment stable.
The Croatian society of banks has announced that it will discuss a moratorium on repaying debt for firms and citizens who find themselves in trouble because of the coronavirus.
To get full access to all content of interest see our
Subscription offer
Or
Register for free
And read up to 5 articles each month.
Already have an account? Please Log in.