Novalić: We have secured another 100 million KM to help the hardest-hit sectors

Novalić: We have secured another 100 million KM to help the hardest-hit sectors

SARAJEVO, September 13 (FENA) – The FBiH Prime Minister Fadil Novalić announced in an interview with FTV that another 100 million KM will be used to help the sectors hardest-hit by the pandemic, then pointed out that thanks to the government’s measures, 10,000 jobs have been restored since May and announced the adoption of several fiscal laws pertaining to labor policies.

He assessed that the introduction of a “Mini-Schengen” among the countries in the region is a good idea from the point of view of the economy.

“Expansion of the market is a good thing, but we have had quite bad experiences with CEFTA, in which we are witnessing a series of administrative barriers being imposed on the flow of our goods to our neighbors,” said Novalić.

He pointed out that the FBiH government on Monday will pay the advance for the purchase of coronavirus vaccines, expected to arrive in September, but it was postponed to the end of the year.

Novalić specified that the FBiH Government has planned the procurement of 800,000 doses of the vaccine.

Asked about the information that only 19 percent of the funds provided with the so-called corona law were allocated for helping the economy, Novalić said that this information was correct because the assistance was awarded only to those who had a drop in business exceeding 20 percent.

“It turned out that there were not many of those companies that recorded such a decline in business,” said Novalić.

He explained that under this law, companies that had a decline were exempted from paying an advance for the profit and income taxes, which is the amount of hundreds of millions of KM, that municipalities were exempt from Civil Protection Service fees, and the cantons received around 200 million KM to mitigate health and economic effects of the pandemic.

Novalić emphasized that another 100 million KM will be used to help the most severely affected sectors such as tourism, catering, exports, transport and airport operation.

He added that the Guarantee Fund was formed with the aim of stimulating commercial banks to lend money to the economy.

Novalić claims that the new loan from the IMF does not mean that the Federation of BiH has liquidity problems, since the share of FBiH’s debt in the GDP is twice lower than in the RS, more than twice lower than in the one of Serbia, and more than three times lower than the one of Croatia.

When it comes to workers who lost their jobs during the pandemic, Novalić says that there is no need for manipulation and stated that 17,193 workers have lost their jobs since March 16 until today.

“However, thanks to the FBiH government measures, 10,000 jobs have been restored since May,” said Novalić.