Bosnia's Federation entity halfway through with "corona law" adoption

NEWS 24.04.2020 09:04
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Source: N1

The lower house of Bosnia's Federation entity parliament endorsed on Thursday so-called “corona bill,” a law proposal aimed to help this part of the country cope with the consequences of the crisis caused by the coronavirus pandemic.

In an online session that ended Thursday late night, the House of Representatives also adopted a proposal of the budged rebalance in the amount of 5.5 billion marks (2.81 billion Euro), which is closely connected to the adopted law proposal.

To be implemented, the laws also have to pass the House of Peoples, the Parliament's upper chamber.

According to the Government, the law proponent, the “corona law” will alleviate the negative consequences on the entity's economy and it among other provisions includes special subsidies, removal of profit tax advance payment and income tax advance payment, termination of all administrative, civil, extrajudicial or executive procedures during the state of emergency, cancelling all default interests, foreclosures and establishing a guarantee fund.

The Government also tasked the FBiH Development Bank to provide quarterly reports on managing the Loan Insurance Fund and the Government would deliver that report to the Parliament, which ensures transparency of the use of funds.

“This is the period of the coronavirus pandemic peak. It is the fact that it remains unclear for how long this is going to last and how will the situation get back to the normal. It is hard and ungrateful to make projections of the movement of macroeconomic indicators, especially the projections of the indirect tax and contribution payment,” said Fadil Novalic, the FBiH Prime Minister.

According to him, 20 million marks (approx 10 million Euro) would be allocated for a guarantee fund within the Development Bank which, along with other 80 million marks (some 40 million Euros) that were already allocated for the bank, make a potential of 100 million marks (some 50 million Euros and possible potential that might be multiplied to the amount of 500 million marks (some 250 million Euros).

The budget rebalance secures additional 21 million marks (some 10.5 million Euros) for the healthcare sector, while 200 million marks (some 100 million Euros) will be allocated for lower authority levels, said Novalic.

The House of Representatives also endorsed the further borrowing allowance in line with the loan agreement between Bosnia and Herzegovina and the International Bank for Reconstruction and Development (IBRD) as well as the loan arrangement with the International Monetary Fund (IMF).

(1 Euro = 1.95 Bosnian mark)