30.03.2020

Approval of Emergency Fiscal Package

19th Government Meeting

Prishtina, 30 March 2020

At the request of the Incumbent Prime Minister of the Republic of Kosovo, Albin Kurti, in accordance with the Regulation of Rules and Procedure of the Government of the Republic of Kosovo, a corresponding meeting (electronic meeting) of the Government was held today, in which the Decision on the Emergency Fiscal Package was discussed and approved.

Upon the proposal of the Ministry of Finance and Transfers, the incumbent Government in today’s meeting approved the Emergency Fiscal Package which provides the following measures:

–          Double payment of the social assistance scheme to all beneficiaries of social assistance for the month of April and May, amounting to seven million six hundred fifty thousand (€7,650,000.00) Euros, including payments executed for the month of March;

–          Payment of an additional sum of thirty (30 €) Euros per month to all beneficiaries of social assistance and pension schemes that receive a monthly payment lower than one-hundred (100€) Euros, for the month of April, May and June, provided that they are beneficiaries of only one social assistance scheme; and reinstatement in the list of beneficiaries of all persons whom as a result of the failure to appear or lack of assessment for the period January-March 2020, have not had their entitlements renewed. This measure amounts to thirteen millions (€13,000,000.00) Euros;

–          Financial support for business organisation under financial distress due to the downfall of their business activities that resulted from the public health emergency situation as follows:

o  Covering of expenditures for the monthly salaries in the amount of one hundred seventy (€ 170) Euros for April and May, amounting to forty-one million (€41,000,000.00) Euros;

o   Rent subsidy up to fifty percent (50%) of the rent value for small and medium enterprises for the month of April and May, amounting to twelve million (€12,000,000.00) Euros; and

o   Covering the value of pension contributions with regard to the measures foreseen under this Decision for April and May, amounting to eight million (€ 8,000,000.00) Euros;

–          Provision of interest-free loans to publicly-owned enterprises facing financial difficulties due to the public health emergency situation, aiming to ensure their temporary liquidity, with maturity period until 31.12.2020, amounting up to twenty million (20,000,000.00 €) Euros;

–          Provision of additional financial support for Municipalities of the Republic of Kosovo affected by the pandemic, if so required due to the eventual extension of the public health emergency situation, amounting up to ten million (10,000,000.00 €) Euros;

–          Provision of a salary top-up in the amount of three hundred (€ 300) Euros for field workers and those exposed directly to the risk of infection in their work (not the entire staff of the institution): medical staff (doctors and nurses), members of Kosovo Police, officials of the Correctional Services (guardians), officials of the Emergency Management Agency (fire-fighters), KSF personnel (soldiers), employees working at the Quarantine – Student Centre in Prishtina, officials (inspectors) of the Labour Inspectorate, officials (inspectors) of the Tax Administration of Kosovo, officials of the Kosovo Customs, officials (inspectors) of the Labour Inspectorate, officials (inspectors) of respective municipal inspectorates, officials (inspectors) of Labour Medicine, for the month of April and May, amounting to fifteen million (€15,000,000.00) Euros;

–          Additional payment in the amount of one hundred (€100) Euros to employees of grocery stores, bakeries and pharmacies for April and May, amounting up to three million (€3,000,000.00) Euros;

–          Payment of monthly assistance in the amount of one hundred and thirty (€130) Euros to citizens who lose their jobs due to the public health emergency situation, for April, May and June, amounting up to four million (€4,000,000.00) Euros;

–          Support to initiatives and projects aimed at improving the lives of non-majority communities in the Republic of Kosovo that have been hit hardest by the public health emergency situation, amounting up to two million (€2,000,000.00) Euros;

–          Provision of financial liquidity for:

o   Micro-enterprises and the self-employed through certain programs of the Kosovo Credit Guarantee Fund, in the amount of ten thousand (€10,000) Euros for a period of 24 months, amounting up to fifteen million (€15,000,000.00) Euros; and

Business Organizations/Companies authorized to provide basic services (similar to those of Publicly-Owned Enterprises) on return by 31.12.2020, within the value specified in 1.4 of this Decision.

–          Increase of budget for grants and subsidies to the Ministry of Agriculture, Forestry and Rural Development in order to increase agricultural production, amounting to five million (€5,000,000.00) Euros;

–          Increase of budget for grants and subsidies to the Ministry of Culture, Youth and Sports in order to avoid the situation created by the public health emergency in sports and cultural activities, amounting to five million (€5,000,000.00) Euros;

–          Support to exporters in the Republic of Kosovo after the public health emergency situation ends, amounting to ten million (€10,000,000.00) Euros;

–          Financial support to business organizations registering employees with at least one (1) year employment contract during the period of public health emergency situation, with one hundred and thirty (€130) Euros for the following two months after registration, amounting up to six million (€6,000,000.00) Euros; and

–          Payment of monthly assistance in the amount of one hundred and thirty (€130) Euros to citizens living under poor social conditions, declared as unemployed in the competent institution and who are not beneficiaries of any monthly income from the Kosovo budget, for April, May and June, amounting up to three million (€3,000,000.00) Euros;

With the decision approved by the incumbent Government in Kosovo, the Ministry of Finance and Transfers shall be authorized to approve the criteria, terms, conditions, manner of implementation and all other specifications necessary for their implementation, in accordance with the principles of public finance management. The Decision shall also oblige all budget organizations / institutions concerned to implement the Decision and the decisions to be taken by the Ministry for its implementation.

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