The government will not ignore the appeals of entrepreneurs but does not accept the proposal of the Croatian Banking Association

Labor Minister Josip Aladrović stated on Thursday that a continuation of measures for the preservation of jobs can be expected from March 1.

– At this moment, we are, as always, side by side with employers and workers. As a responsible government, we protect jobs and business activity, and we will continue to do so – said Aladrović after the government session, adding that assistance to employers and those whose business is most threatened can be expected in the near future.

– We must constantly, as we have so far, balance between epidemiological and economic measures. We will continue to do so – he stated.

He also mentioned that there are assumptions that work will not be able to proceed at full capacity, especially in hospitality and some other sectors.

– Given that and the potential decline in revenue, we will certainly be available to employers and we will certainly protect the labor market, and we can expect additional measures for the preservation of jobs from March 1 – said Aladrović.

Marić: Measures will very likely be continued

That the measures will likely be continued can also be concluded from the response of Finance Minister Zdravko Marić to journalists’ questions. He said that the government “will not ignore the appeals of entrepreneurs”.

– Regarding the extension of measures, discussions will be held, and they will very likely be continued – said Marić, adding that discussions are ongoing with entrepreneurs.

Journalists also asked Marić whether discussions had begun with banks about loans, given that many entrepreneurs complain that they cannot obtain a loan if they have a revenue drop of more than 60 percent.

Marić said that the government has done everything to ease the conditions for lending and to ensure certain other incentives and circumstances to stimulate this.

– We have enough mechanisms and instruments to put bank lending activity into function as much as possible – said Marić, adding that it is legitimate to seek state guarantees and set the condition that the state “always stands behind everything”, but it is also legitimate that the state has its own limitations and macroeconomic policy that it pursues.

– It is not correct to shift the responsibility to the other side – said Marić, referring to the proposal of the Croatian Banking Association (HUB) that banks are willing to lend but with state guarantees.

When asked about the state of the budget, he said that the overall decline in tax revenues, compared to the period before the COVID pandemic, is in line with expectations.

– Tax revenues are 4 to 5 percent lower compared to the same period last year. It is encouraging that the decline in contributions is smaller, which means that the trend in the labor market and employment is still preserved – said Marić.

When asked whether the government has considered the distribution of funds from the “Help for Reconstruction After the Earthquake” initiative in the form published today by Jutarnji list, Marić replied that only what is adopted at the narrower cabinet and government session is relevant, and that the document whose facsimile was published by Jutarnji list is part of an internal discussion within the state administration.

Jutarnji list reported today that, according to the government’s plan, only 40 percent of the money raised in the “Help for Reconstruction After the Earthquake” initiative will be used for the reconstruction of houses, but the government decided today to direct all collected 101.5 million kuna to that purpose.

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