Information about certain measures taken by governments in the Kinstellar jurisdictions in relation to the COVID-19 situation This table reflects the situation on 6 May 2020 South Eastern Europe
Bulgaria Romania Serbia Turkey
1. Travel Restrictions
1.1 Incoming Closed borders for foreigners from Not allowed to fly from Spain, State of emergency in place – Land borders closed with Bulgaria, third countries and individuals Italy, France, Germany, Austria, entry prohibited to all foreign Greece, Iran, Georgia, Azerbaijan regardless of their citizenship arriving Belgium, Swiss Confederation, citizens with the exception of and Iraq. from the following EU Member States United States of America, United diplomats accredited in Serbia, Passenger sea crossings between and members of the Schengen area: Kingdom of Great Britain and foreigners with residence Greece and Turkey are also closed. Italy, Spain, France, United Kingdom Northern Ireland, Kingdom of the permits, crew of cargo vehicles, and Northern Ireland, Germany, Netherlands, Turkey and Iran to cargo ships and airplanes, crew Switzerland, Austria, Belgium, Romania, except for several of trains entering border stations, Iceland, Liechtenstein, Luxembourg situations. persons provided by a special and the Netherlands. Mandatory self-isolation at home permit of the Serbian Some categories such as individuals or quarantine, as the case may Government and persons with extended, long-term or be, for all persons entering escorting humanitarian convoys. permanent residence permit status, Romania, with several exceptions. All Serbian citizens entering medical and social professionals and Prohibition of foreign citizens and Serbia are subjected to the 14- workers, transport personnel, foreign stateless persons to enter day mandatory quarantine officials, etc., are excluded from the Romania, with several exceptions. Revocation of the state of scope of the restriction. International road transport of emergency is announced for 7 There is a general prohibition of persons from Italy, Spain, France, May. passenger traffic with several Germany, Austria, Belgium, Swiss exemptions with regard to country of Confederation, the United departure, residence permit etc. Kingdom of Great Britain and Mandatory quarantine for all Northern Ireland, the Kingdom of incoming Bulgarian citizens and the Netherlands and Turkey to
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Bulgaria Romania Serbia Turkey foreign individuals regardless of the Romania during the state of country of departure. The same emergency is suspended. applies for cargo transport drivers Temporary closure of parts of the incoming from countries with border. registered COVID-19 cases, airplane crew with registered COVID-19 case among the passengers. Organized trips and holidays of foreign citizens in Bulgaria are suspended.
1.2 Outgoing All training and business trips are No flights allowed to Spain, Italy, Medical staff is advised to avoid All international flights are prohibited. France, Germany, Austria, travelling to main COVID affected suspended. Traveling outside Bulgaria is not Belgium, Swiss Confederation, areas. prohibited, but the government United States of America, United Border crossings with advises citizens to withhold traveling Kingdom of Great Britain and neighbouring countries are and to postpone or cancel booked Northern Ireland, Kingdom of the closed for passenger transit, holidays. Netherlands, Turkey and Iran, except for persons that were except for several situations. Organized tourist trips and holidays granted with a special permission of Bulgarian citizens abroad are International road transport of by the government. suspended. persons from Romania to Italy, Spain, France, Germany, Austria, Citizens who decide to travel outside Belgium, Swiss Confederation, Bulgaria must conclude health the United Kingdom of Great insurance. Britain and Northern Ireland, the Kingdom of the Netherlands and Turkey during the state of emergency is suspended. Temporary closure of parts of the border.
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Bulgaria Romania Serbia Turkey
2. Other Restrictions
2.1 Free Restricted to going to work, visiting Limitation and prohibition of Curfew for all citizens except Citizens at the age of 65 and older Movement grocery shops, pharmacies, banks movement of persons outside limited categories (e.g. police, (except government officials and and insurance offices, offices of their house, except for urgent authorised night shift staff) from 6 healthcare personnel) and at the suppliers of payment services. matters, such as food supply, pm until 5 am on working days, age of 20 and below, as well as who Individuals visiting or moving in work, medical issues etc., and from 6 pm on Friday until have low immune system and public indoor premises or outdoor urgency that needs to be 5am on Monday. Senior citizens chronic lung disease, asthma, spaces (including, but not limited to confirmed by an affidavit/employer (i.e. 65ys+ and 70ys+ in villages COPD, cardiovascular disease, public transport, shopping facilities, certificate (measure applicable up to 5,000 inhabitants) are, in kidney, hypertension and liver parks, churches, monasteries, 24/7); Stricter measures for general, prohibited to leave their disease and those who use temples, halls, streets, bus stops) persons older than 65 years. homes except (i) between 4am medicine that disrupt the immune must wear disposable or reusable Pedestrian traffic outside the and 7am on Friday, for the system are not allowed outside and protective face mask or other house should observe the general purpose of buying supplies in if they violate so, an administrative protective item covering the nose and requirements and avoid forming supermarkets, and (ii) between fine shall be applied. The rest of the mouth (including scarf etc.). any group of persons (more than 6pm and 1am on the following citizens are encouraged to stay day, for a period of 60 minutes inside. Travelling to and from district cities is 3 persons not living together). and in range of up to 600 metres made via checkpoints and is allowed Gradual prohibition of road, rail, A mandatory quarantine for 14 days from residence. only in respect of commuting to work, maritime, river or air traffic on is applied to the citizens who came going home or due to medical different routes and the subway. Persons with development from abroad. disorders (e.g. autistic children) reasons (all to be evidenced by When entering Romania, drivers All public transportation vehicles will are exempt from curfew respective documents). of freight vehicles with maximum temporarily accept 50% of the restrictions, and they may leave Separate neighborhoods in a few authorized capacity of more than passenger carrying capacity stated their homes at any time, cities and a small village are in full 2.4 tonnes, not having symptoms in their license and distanced accompanied by maximum one mandatory quarantine with associated with COVID-19, fill out seating will be provided. adult (parent, caretaker), but may prohibition for entering and leaving. an affidavit indicating how they No internal travels (including bus, not move away more than 200 can be contacted. Same flights, personal vehicles) are meters from their residence measures apply to drivers of allowed without a Travel Permit address. freight vehicles with a maximum Document which shall be obtained authorized capacity of more than from the governorship.
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Bulgaria Romania Serbia Turkey 2.4 tonnes that travel for Persons who own dogs and are Taxis with licence plates ending with professional purposes. below 65 years are allowed to odd and even numbers will be in Drivers of freight vehicles with a take a dog for a walk between 11 service on a rotating basis each day maximum authorized capacity of pm and 1 am on any day, and in İstanbul, Ankara and İzmir more than 2.4 tonnes, passing between 8 am and 10 am on provinces. through Romania are not obliged weekends, for a period of 20 No entrance and exist are allowed to fill in the above-mentioned minutes and in range of up to for certain provinces and districts affidavit, provided that several 600 metres from residence, which have the COVID-19 cases. conditions are observed. Mandatory quarantine for thirty-one Since 31 March 2020, the north- provinces (incl. Istanbul, Ankara and eastern Romanian city Suceava İzmir) during weekends. (together with another eight communes located in the
surrounding area) were placed under quarantine. Flights, train connections and public transport routes to this area are suspended. During this period, only (i) transportation of goods and (ii) movement of persons undertaking economic, defence or public administration activities are allowed. Since 4 April Tandarei city, Ialomita county has been placed under quarantine. Same measures from Suceava are applicable.
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Bulgaria Romania Serbia Turkey
2.2 Closures As of 13 March 2020, all public Closure of schools/universities, No public gatherings (i.e. more All public places such as schools, (public places, places such as schools, universities, hotels/restaurants/ coffeeshops, than 2 persons at the same universities, education services, shops etc.) kindergartens, shopping centres, museums, clubs, casinos, place, with the exception of restaurants, sports, entertainment restaurants, night clubs, etc. are shopping centres, dental offices. family members) in open spaces places, theatres, cinemas etc. and closed. Suspension of cultural, scientific, are allowed. Also, all indoor retail facilities closed with the Exception is made for food stores, artistic, religious, sports, gatherings prohibited unless they exception of groceries, pharmacies pharmacies, bank and insurance entertainment or gambling, spa are of special importance for the and selected vital supplies and offices, offices of payment services treatment and personal care work of state bodies or services. services. providers in the commercial centres activities, held in confined spaces. Schools, universities and The highest number of customers in subject to strict compliance with the theatres have been closed. the supermarkets will be one tenth sanitary and hygiene requirements. Kindergartens, restaurants, of the total area served directly to Prohibition of eating food at dining cafes, shopping malls, personal the customer and the working hours areas and stores of gas stations has care activities, casinos, and of the supermarkets are shortened. been introduced. gyms are in the process of Citizens who do not have masks are gradual re-opening, but not allowed to get in the Prohibition of all public events, complying with necessary safety supermarkets. gatherings and activities has been precautions is mandatory (e.g. introduced. Prohibition of visits to Many banks changed their opening social distance, wearing public parks, gardens and and closing hours of their branches protective equipment, etc.), and playgrounds. as 12:00-17:00. their activities are somewhat All meetings or events (scientific, Traveling to and from arable land restricted. Grocery stores, cultural, artistic etc.) which will be plots and farms, as well as pharmacies, banks, post offices organized in open or closed areas at functioning of farmer’s markets are are open, but their working hours national and international level are permitted. are shortened and complying postponed until the end of April. with necessary safety precautions is mandatory. Public transport of passengers is in the process of re-opening, but complying with necessary safety precautions is mandatory, and
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Bulgaria Romania Serbia Turkey certain restrictions will apply (e.g. maximum number of passengers per vehicle, mandatory wearing of masks, prohibition for unemployed and retired persons to use public transport etc.). Religious communities are advised to perform their rituals without presence of their members.
3. Measures affecting certain industry sectors
3.1 Any general No restrictions except for certain Specific restrictions for certain Certain types of goods cannot be Export restrictions on protective import/ export types of medical products (see 3.4 types of medical products and exported, e.g. sunflower oil, flour, equipment (masks, gloves, etc.) and restrictions below). biocidal products soap, diapers, alcohol, medical ventilator machines. protective gear. 3.2 Commercial All premises falling in the scope of During the state of emergency, No measures yet in place. The Directorate General of Land and landlords/ tenant the adopted restriction for visits (see small and medium enterprises Cadastre will not take any requests 2.2 above). that have partially or completely other than sale, mortgage and title Possibility for municipal councils to ceased their activities as a direct deed transactions without citizen adopt decisions for reduction of the order of the public authorities and requests until 04.05.2020. amount of rents for municipal which hold emergency state properties or partial or entire certificates issued by the Ministry payment exemption of certain of Economy, Energy and Business categories of natural or legal Environment benefit from a persons. deferral from payment of rent for premises used as a registered Upon decision of the Council of office or secondary offices. Ministers, the ministers, regional governors and heads of other
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Bulgaria Romania Serbia Turkey agencies that have provided for rent or usage state-owned property, could reduce or exempt the rent payments.
3.3 Banks During the state of emergency, no The Romanian Government have Loan and leasing repayment The 90-day delay period that causes default interest and penalties will be recently enacted loan moratorium moratorium in place for 90 days the loans to be classified as non- due on late payments under credit measures that allow bank debtors and/or not less than the duration performing loans shall be extended agreements and other forms of (whose financial situation was of the state of emergency. up to 180 days for First and Second financing (factoring, forfeiting, etc.) directly or indirectly hit by the Group loans until 31.12.2020. provided by banks and financial coronavirus pandemic) to For the loans that continue to be institutions. reschedule the repayment of their classified in the Second Group The Bulgarian National Bank has loans and get a grace period of up despite the 90-days delay, banks adopted guidelines allowing to 9 (nine) months. can continue to set aside their own favourable regulatory treatment of The debt rescheduling facility is risk models in calculating the private moratoria on loan repayments available for both natural and expected credit loss within the scope to be fulfilled by the commercial legal persons provided that of Financial Reporting Standards of banks. certain requirements are fulfilled. Turkey and there will be no The commercial banks have adopted The interest on the debt additional provisioning obligations. on 10 April 2020 a standardized accumulated over the grace Loans that are classified as procedure for deferral and settlement period is capitalised - except for receivables due to restructuring and of obligations due under the said type the mortgage loans of the natural whose principal / interest payments of agreements, subject to specific persons, where the accumulated are delayed more than 30 days conditions. The payments due may interest is set up as another loan, within one year of monitoring period be deferred for a period of up to 6 guaranteed by the state, with 0% or are restricted once more during months but not later than 31 interest rate, payable in equal this monitoring period shall not have December 2020. In case the private instalments over a 60-month to be classified in the third group. period. moratoria standardized procedure is The 90-day delay specified in the applied to a financing instrument, it article stipulating a special provision will not be treated as a non- of 20% of the receivables is 180 performing loan for regulatory days for leasing and factoring purposes by the Bulgarian National
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Bulgaria Romania Serbia Turkey Bank and the banks would not be companies; for financial leasing required to apply the standard companies, it shall be increased to provisioning rules for such 240 days, instruments. Maximum interest rate implemented The Bulgarian National Bank has in the credit card transactions has announced a measure for decreased effective from April 1, approximately BGN 9 bln (approx. 2020. EUR 4,6 bln) in support of the Minimum payment amount has liquidity of the banking system, decreased to 20% effective from including capitalization of the entire April 1, 2020. profit of the banks for 2019 (i.e. Reporting liabilities of the banks restriction on distribution of have relaxed in order to provide dividends), cancellation of the flexibility for banks to meet minimum planned increase in the ratios regarding liquidity levels. countercyclical capital buffer for 2020 and 2021, and reduction of the In case the minimum amount in the foreign exposures of the commercial credit card is not paid within three banks. months of the due date, the card issuers may define grace periods The capital of the Bulgarian through not requesting their Development Bank will be increasing receivables, including minimum by BGN 500 mln (approx. EUR 255 amount, from the credit card holders mln) for portfolio guarantees to until December 31, 2020. commercial banks and temporary equity investment in affected businesses with a buyback option. Another BGN 200 mln. (approx EUR 102) will also be provided to the Bulgarian Development Bank be used for issuance of guarantees to commercial banks for interest-free
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Bulgaria Romania Serbia Turkey loans of up to BGN 4,500 (approx. EUR 2,300) to individuals, affected by the pandemic. The Fund Manager of Financial Instruments in Bulgaria will provide guarantees to banks worth BGN 170 mln (approx. EUR 87 mln), which will secure a portfolio of new loans up to BGN 850 mln (approx. EUR 435 mln) within the current year for the purpose of provision of liquidity support to SMEs active in different sectors, including those most affected by the crisis.
3.4 Pharma and During the state of emergency, the Prohibition of export of medical During the state of emergency, it All masks will be provided freely by medical devices parallel export of medicinal products, devices and sanitary materials is possible to market and apply the relevant bodies of government export of quinine-based medicines is that ensure the prevention and medical devices which have not upon the request whereas the sale prohibited. Prohibition on the export treatment of COVID-19 been manufactured in of masks with an amount of money of available protective gear and associated diseases/ drugs for accordance with applicable is not allowed. disinfectants. distribution outside the territory of standards, if a distributor: The customs duty on the import of Romania, except for (i) medical ▪ delivers one copy of ethyl alcohol used in the production devices and sanitary materials description of technical of cologne and disinfectants and manufactured in Romania and characteristics and user additional customs duties used in which are delivered under a manual, translated to medical masks and respirators have contract and (ii) drugs Serbian; been set to zero. manufactured by the producers ▪ provides a statement that the based in Romania, as well as medical device in question is drugs transiting Romania and efficient as devices destined for other markets. manufactured in accordance
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Bulgaria Romania Serbia Turkey with manufacturing standards; ▪ provides a statement that it will provide training for medical professionals that will use such device; ▪ provides a commitment that it will provide spare parts and services for a certain period.
3.5 Other Only as described above - leisure Prohibition to export (i) raw N/A Law on Amendments of Certain industry due to mandatory shutdown. materials used in the manufacture Laws has been approved and Aviation, bus and railway sector due of TP1 and TP2 biocidal products published in the Official Gazette on to restriction of international and local and (ii) TP1 and TP2 biocidal March 26, 2020. Under the Law, the travel. Public sector due to products, except for raw materials following measures will be provided: suspension of work of administration, manufactured in Romania / (i) all judicial and administrative courts, public enforcement agents biocidal products manufactured periods have been suspended as of etc. by Romanian producers or April 30, 2020; producers from EU countries Tourism sector due to cancelled or (ii) all enforcement and bankruptcy based in Romania, as well as raw postponed holidays. proceedings (excluding those materials / biocidal products Agriculture and stock-breeding related to child support payment) are transiting Romania and destined sectors due to difficulties for suspended until the end of April; for other markets outside realization of the production. Romania. (iii) a minimum wage support will be provided to the employees who lost
their jobs;
(iv) Lessors will not be able to terminate leases or commence eviction processes in relation to workplace tenancies for failure to
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Bulgaria Romania Serbia Turkey pay rent during the period between 1 March 2020 and 30 June 2020; (v) for the part-time, on-call and hourly working employees who work for 20 days or less in a month, the condition of the general health insurance premiums pertaining to the missing days to be completed to 30 days has been changed to apply to such employees who work for 8 days or less in a month; and (vi) in case the delayed payment of check debts is paid or restructured until 31 December 2020, it will not be considered by credit institutions and financial institutions. Working hours and flexible working opportunities will be re-organized in private sector. All court hearings have postponed until April 30, 2020. The Governorship of İstanbul has decided to suspend all ferryboat and sea bus services (passenger transportations). Vehicle inspection periods are extended for 3 months with regard to the vehicles of whose inspection period has been expired.
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Bulgaria Romania Serbia Turkey Health Care Pricing Commission has decided the pricing and invoicing of COVID-19 treatments provided in the hospitals and treatments will be covered by the universal insurance.
4. Subsidies and financial support available from governmental side
4.1 General for The approved Law on measures and The Romanian state pays the I. Tax policy measures ▪ Postponement in loans for min. 3 businesses and actions during the state of indemnity for technical 1. Deferral of payment of salary months for companies with employers emergency introduces provision of unemployment, within the limit of tax and social security disrupted that cash flow subsidy for payment by the National 75% of the gross salary contributions for the private ▪ Stock financing support for Insurance Institute of remunerations corresponding to the occupied job sector until beginning of fiscal Exporters. and social security contributions for position, but not more than 75% year 2021 with possibility of ▪ Tax statements re. deductions at the remuneration in the amount of 60 of the national gross average additional extension. Deferred source (e.g. Withholding) will be per cent of the employees’ salary (employees whose obligations will subsequently postponed for 3 months. remuneration that will apply to certain individual employment be repaid, in not more than 24 Temporary income support (via employers meeting criteria to be agreements are suspended due monthly instalments without Short-time Working Allowance given determined by the government. The to temporary calculated late payment to employer) will be provided to law also provides for simplified interruption/reduction of employer interest. procedure for granting support from activity during the emergency workers in workplaces that halted 2. Deferral of payment of European funds. state). their activities. corporate income tax advance Three public banks postpone the BGN 500 mln. (approx. EUR 255) Other professionals as defined by payments for second quarter loan debts and provide extra loans have been provided to the Bulgarian the Romanian Civil Code will of 2020. Development Bank which will be benefit of an indemnity of 75% of for the employers in order to provide 3. VAT exemption for donation of used in support of SMEs in difficulty the national gross average salary. for paying the salaries of the goods with a goal of due to COVID-19 either through employees and these banks will Increase the limits for motivating donations to the equity investment (with buy-back provide “Stay in Business Support guaranteeing loans for SMEs, institutions which are involved option) or through guarantees to Loans” to all companies in all through the National Credit in implementation of measures
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Bulgaria Romania Serbia Turkey commercial banks that will provide Guarantee Fund for SMEs, with for protection from the sectors for their operational capital cheaper financing. RON 5 billion in a first phase. disease. needs. The Fund Manager of Financial By the governmental program Respective measures will The deadline for the declarations Instruments in Bulgaria has IMM Invest Romania, the State apply equally to all companies regarding Annual Income Tax, introduced a program for supporting guarantees up to 80% of the irrespective of their size or withholding tax, VAT, Form “Ba-Bs” SMEs through provision of turnover value of the financing, excluding economic strength. notifications and creating and funds in the form of long-term loans interest and commissions related II. Measures of direct financial signing e-Books and “Electronic up to 10 years as a temporary to the guaranteed loan. The aid to private sector Book Licences” have postponed measure to support enterprises. maximum value of the until 30 April 2020. 1. Direct aid to entrepreneurs, Consideration is given to the loans/revolving credits for micro, small and medium size Withholding tax, VAT, Form Ba-Bs possibility that the loans may be financing the working capital companies in the amount of and e-Books are postponed for six interest-free for enterprises that have granted cannot exceed RON 5 minimum net salary for each months for several sectors that retained the employment volume million (approx. EUR 1 million). employee during the state of affected most due to the outbreak they had before the crisis. For investment loans, the emergency (cca. RSD 30,000; and for taxpayers that fall under the maximum value is RON 10 million An extended grace period for the approx. EUR 250). It is scope of the mandatory lockdown (approx. EUR 2 million). principal is envisaged as well as an envisaged that this measure requirement. Maximum aggregated amount of opportunity for an interest grace will include payments for up to As per the Presidential Circular State guaranteed financing for a period for the crisis period is being three minimum monthly numbered 31087 and dated beneficiary is RON 10 million discussed with the responsible salaries per employee. 02.04.2020, the obligations of the institutions. Another measure (approx. EUR 2 million). 2. Direct aid to large companies government contractors under introduces possibility for small start- For small and microenterprises in the amount of 50% of Public Procurement Contracts Law ups to apply for loans in amount up applying for loans/revolving minimum net salary (cca. RSD can be suspended temporarily or to BGN 50,000 (approx. EUR 25,000) credits for financing working 15.000, approx. EUR 125) for permanently, partially or completely, with preferential terms. capital, the State guarantees up each employee on paid upon their request and provided that to 90% of the value, excluding The Fund also aims at increasing the temporary leave in accordance it is proven that fulfilment of their interest and commissions related flexibility of the resource developed with Articles 116 and 117 of obligation became impossible due to to the guaranteed loan. The in the field of venture investments the Labour Law. the COVID-19 outbreak. As a result through shares in start-ups and maximum value of the financing is of the assessment of the relevant The listed measures will not limit innovative enterprises. RON 500,000 (approx. EUR administrative body, the period may 102,400) for microenterprises and number of employees who are on paid temporary leave by
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Bulgaria Romania Serbia Turkey Another measure introduced RON 1 million (approx. EUR employer’s decision, nor amount be extended or the agreement may possibility for agricultural producers 204,800) for small enterprises. of rights which is determined by be terminated. to apply for interest-free loans to The Romanian state will subsidize employer during the leave. Maximum investment and business cover cultivation and production 100% of the interest on III. Liquidity measures for loan cap limit extended from costs. guaranteed loans to SMEs private sector TL300,000 to TL 3 million for SMEs. starting from the moment the loan 1. Financial support through Neither over 25% of 2019’s net is granted until 31 March 2020 loans for perseverance of dividend nor the dividend of previous and afterwards only if certain liquidity and working capital for years shall be distributed. conditions are met. entrepreneurs, micro, small, Social security payments have been SMEs obtaining the Emergency medium entities, agricultural extended. Situation Certificate are entitled to farms and cooperatives. As a Salary confiscation deductions will defer the payment of the utility part of the Program, Serbian continue during outbreak. services and the payment of the Development Fund will offer rent for the premises that loans in the total amount of represent their main or secondary RSD 24 billion (approx. EUR registered offices. This facility is 200 million). Repayment also applicable to other categories period will be 36 months with directly affected by the COVID-19 12 months grace period. pandemic (e.g. lawyers). Maximum financial support is SMEs holding the Emergency also envisaged: Situation Certificate are entitled to ▪ up to RSD 5 million (approx. invoke the force majeure in EUR 40,000) for relation with their other ongoing entrepreneurs and micro agreements, if such companies entities; prove (based on supporting ▪ up to RSD 25 million documents or by any mean, (approx. EUR 200,000) for including electronic means) their small entities; and attempt to renegotiate such agreements so that to be adapted in accordance with the
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Bulgaria Romania Serbia Turkey exceptional conditions caused by ▪ up to RSD 50 million the state of emergency. (approx. EUR 400,000) for medium entities. 2. Financial support through guarantee scheme provided by the state to commercial banks which are present in Serbia, for loans in EUR and RSD for perseverance of liquidity and working capital for entrepreneurs, micro, small, medium entities and agricultural farms. Repayment period will be 36 months with 12 months grace period. Maximum value of the loan which can be granted through this program is envisaged to be 25% of revenues in 2019 or EUR 3 million. Payment of dividends for all companies, except for public enterprises, is prohibited. Decrees and bylaws which will define the exact manner of implementation of these measures are yet to be reached by the state.
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Bulgaria Romania Serbia Turkey
4.2 To specific Special measures adopted by the During the emergency state the Some sectors may be given ▪ April, May and June 2020 VAT, sectors Bulgarian National Bank for the prices for electricity and heat, special support (e.g. hospitality). withholdings and social security normal functioning of the bank natural gas, water supply, premium payments postponed for system (see 3.3 above). sanitation and fuels were capped. 6 months in Retail, Shopping Mall, Public discussions on adopting Any selling/buying of majority Iron and Steel, Automotive, financial measures for the health stakes in companies which are Logistics, Transportation, Cinema care sector. part of the national energy system and Theatre, Accommodation, Catering, Textile and Garment and Simplified procurement procedure are suspended. Event-Organization sectors. has adopted for this purpose. ▪ The VAT rate will be decreased Support for the agricultural sector is from 18 percent to 1 percent in also under discussion. domestic air transportation for 3 months. Accommodation Tax (City Tax) for hotels will not be until November. Electricity Market License Regulation has accepted COVID-19 as a force majeure whereas the performance of certain liabilities of the electricity generation license and pre-license owners have been extended.
4.3 To employees Please see above p. 3.3. Days off for parents caring for Direct aid to Serbian citizens ▪ Remote work or flexible work and individuals The Minister of Employment and children due to school closures - older than 18 year through one- opportunities may be provided to Social Policy has announced that a one of the parents is entitled to off payment in the amount of the employees in public sector procedure for provision of one-time days off from work in the event EUR 100 for the purpose of provided that a minimum number compensation of families with that schools are closed. stimulation of domestic demand. of employees are working parents in unpaid leave will be These employees will benefit of ▪ Social credit packages with low developed. an allowance of 75% of their interest rates
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Bulgaria Romania Serbia Turkey salary for a working day, without ▪ Min. down payment for mortgages exceeding 75% of the gross will be lowered to 10% from 20%. average salary. The allowance for Continue of min wage support each day of leave is paid by the TL 1,000 will be provided for each of employer and re-reimbursed by the individuals who need financial the State-controlled Guarantee support. Certain municipalities and Fund for Unpaid Salaries. organizations also provide food and fundamental needs of such individuals. Needs of the citizens at the age of 65 or older will be provided by the Social Support Groups. President of the Republic of Turkey and some municipalities have started a financial aid campaign. The conditions for the payments subjected to the Residence Account and State Aid Regulation have been eased. Pursuant to the Law No.7244 on Reducing the Impacts of COVID-19 Outbreak on Economic and Social Life and Amending Certain Laws which was published in the Official Gazette on April, 17, 2020, with number of 31102 (the “Law No.7244”), termination of the Employment Agreements (excluding the termination due to immoral,
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Bulgaria Romania Serbia Turkey dishonourable or malicious conduct or other similar behaviour) of the Employees will not be allowed for three months (it may be extended to six months upon the decision of the President). Therefore, in cases where the prohibition of termination is applied, the employer can arrange to leave the employees entirely or partially for unpaid leave within a period of 3 months, whereas the employees cannot terminate their Employment Agreements due to unpaid leave.
5. Measures taken by central banks
5.1 Steps taken Please see above p. 3.3. The National Bank of Romania No charging of interest while loan N/A with regard to decided the following: repayment moratorium is in interest rate (most ▪ to cut the monetary policy rate place. recent and by 0.50 percentage points, expected) from 2.5 percent to 2.0 percent starting 23 March 2020; ▪ to narrow the symmetrical corridor defined by interest rates on standing facilities around the monetary policy rate to ±0.5 percentage points from ±1.0 percentage points. Thus, starting 23 March 2020, the deposit facility rate stays at
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Bulgaria Romania Serbia Turkey 1.50 percent, while the lending (Lombard) facility rate is lowered to 2.50 percent from 3.50 percent. Against this background, the main ROBOR rates are expected to witness a significant downward adjustment.
5.2 Steps taken or No steps taken so far: the Bulgarian No measures yet. N/A Turkish lira currency swap auctions, expected with National Bank declared that it will with a maturity of 1 year, which regard to local apply measures (not specified) for depends on quantity auction method currency ensuring the normal functioning of will be conducted and the banks will the currency board and to adopt be provided with Turkish lira liquidity additional if necessary. against US dollars, euros and gold.
5.3 Use of foreign The action plan does not provide The National Bank of Romania N/A The companies may apply to currency reserves such measures at the current declared that it stands ready to intermediary banks and exchange moment. proceed to cutting the minimum their current bills for a bill with an up- reserve requirement ratios on leu to- 90-day-longer maturity, without - and foreign currency - making any repayment. denominated liabilities of credit FX reserve requirement ratios may institutions, if necessary. be decreased by 500 basis points in all liability types and maturity brackets for the banks of which the real credit growth conditions are met.
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5.4 Other No other steps. Other measures taken by the N/A The banks will be provided with as important steps National Bank of Romania: much liquidity as they need within ▪ to provide liquidity to credit standing facilities. institutions via repo transactions (repurchase transactions in government securities) with a view to ensuring the smooth functioning of money market and of other financial market segments; ▪ to purchase leu-denominated government securities on the secondary market with a view to consolidating structural liquidity in the banking system that should contribute to the smooth financing of real economy and the public sector.
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6. Other
6.1 Trustworthy Bulgarian National Bank Romanian National Bank The Government of the Republic https://www.tccb.gov.tr/en/ English language (http://www.bnb.bg/?toLang=_EN) (https://www.bnr.ro/Home.aspx) of Serbia https://www.saglik.gov.tr/Genel/Man sources Ministry of Foreign Affairs (https://www.srbija.gov.rs/) setHaberList.aspx (https://www.mfa.bg/en/) https://www.tcmb.gov.tr/wps/wcm/co Ministry of Health nnect/en/tcmb+en (https://www.mh.government.bg/en/) Bulgarian Industrial Association (https://en.bia-bg.com/) Bulgarian Development Bank (https://bbr.bg/en) Fund Manager of Financial Instruments in Bulgaria (https://bbr.bg/en)
6.2 Other All employers are obliged to facilitate During the state of emergency, All employers are obliged to Government offices are obliged to work from home for all employees for the statute of limitation and the facilitate work from home for all facilitate work from home where whose work places such work can be lapse terms are frozen, or employees for whose work possible while maintaining the organised. Employers have several suspended if such deadlines places such work can be continuity of the services. For other options: (i) to discontinue the started to lapse. organized. All schools, government officials who are not work operation of the undertaking or Measures regarding the universities and kindergartens suitable for working from home will a part thereof; (ii) to introduce judgement of civil cases: are closed down (long-distance be considered on paid leave. reduced working hours; (iii) to send learning in place). ▪ the activity of the national Long distance learning is in place for employees on up to one half of their courts is generally education. annual paid leave. suspended, but it continues in Employers shall pay heed to the cases of special urgency; provision and proper utilization of ▪ foreclosure proceedings personal and collective protective continue only in cases where
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Bulgaria Romania Serbia Turkey equipment, as well as to conducting it is possible to comply with additional safety instructions to the the sanitary discipline rules; employees. ▪ deadlines for exercising All procedural deadlines in the court, appeals in cases that are not arbitration and enforcement of special urgency and which proceedings, as well as limitation are in progress at the date of periods and deadlines for the establishment of the state implementation of instructions given of emergency are interrupted. by administrative authorities, have been suspended. Certain tax deadlines have been extended. Notary proceedings are limited to urgent cases. During the state of emergency, the court and the Competition Protection Commission are permitted to hold remote hearings, including via virtual connection. The immediate preparation and publishing of the minutes, as well as video recording of the hearing are required. The deadline for filing annual financial statements is extended to 30.09.2020. The deadline for submission of declaration on lack of company’s activity for the year 2019 is extended to 30 June 2020. The deadlines for publishing 6-month financial statements of public companies and conducting General
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Bulgaria Romania Serbia Turkey Shareholders’ Meeting under the Public Offering of Securities Act are extended until 30 September 2020. The deadline for publishing the annual financial statement is extended to 31 July 2020.
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