Information about certain measures taken by governments in the Kinstellar jurisdictions in relation to the COVID-19 situation

This table reflects the situation on 15 May 2020

Central and Eastern Europe

Czech Republic

1. Travel Restrictions

1.1 Incoming Foreigners not living in the CR Passenger entry ban from abroad, State of emergency. Entry is prohibited Emergency situation has been cannot enter, save for EU citizens except for Hungarian citizens. to all foreigners who do not have introduced through 22 May 2020. working/studying in the CR on the Non-Hungarian citizens arriving from residence permit, with minor With effect from 28 March 2020, condition they have been tested on abroad cannot enter the territory of exceptions (diplomats, cargo transport no entry is allowed except by SARS-CoV-2 with negative result Hungary in passenger traffic, with drivers). Ukrainian nationals by car or on and save for certain other certain exceptions. All persons returning home from foot. exceptions. Hungarian citizens arriving from abroad are ordered mandatory As of 11 May 2020, certain abroad must undergo a medical quarantine in accommodation facilities workers (e.g. scientists, seasonal examination when entering Hungary. designated by the Ministry of interior workers) from third countries may for the time necessary to test them for Those Hungarian citizens arriving enter the CR on the same COVID-19, After the negative test, from abroad who, as a result of the condition as outlined above. home quarantine is required for 14 medical examination, are suspected days, the stay in designated premises Mandatory quarantine for of being infected with COVID-19 is included in these 14 days. Non- everyone who enters the CR (save shall be placed in designated compliance is subject to fine of up to for some exceptions) unless quarantine. Those Hungarian 1,659 EUR. he/she has been tested on SARS- citizens arriving from abroad who CoV-2 with negative result (applies are, as a result of a medical Effective 19 March, Slovak citizens for both Czech citizens and examination, not suspected of being residing or working in Hungary in the foreigners). infected with COVID-19 are required distance less than 30 km are allowed to undergo a home surveillance for to cross the borders with valid ID and 14 days at their place of residence document confirming employment. or stay and these persons are

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Czech Republic Hungary Slovakia Ukraine registered by the epidemiological Quarantine does not apply to such authority and the compliance with persons. the rules on official house quarantine is monitored by the police. These measures do not apply if the Hungarian citizen arriving from abroad has credibly proved that he / she (i) has recovered from COVID- 19 infection and shows no symptoms of infection, or (ii) was subjected to epidemiological surveillance for at least 14 days prior to entry. The above provisions do not apply to freight transport traffic. The Foreign Language Learning Program is suspended.

1.2 Outgoing All restrictions cancelled – leaving The following persons may leave Leaving Slovakia is allowed. Ukrainian nationals may leave the Czech Republic is allowed. Hungary only with the special Ukraine by car or on foot. Foreign permission of the Minister: health nationals and stateless persons care workers, soldiers, police may leave Ukraine only upon officers and government officials. approval by Ukrainian authorities. School trips abroad are forbidden; a booked school trip abroad must be cancelled.

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Czech Republic Hungary Slovakia Ukraine

2. Other Restrictions

2.1 Free Free movement restrictions were Limitation of movement outside the Not restricted. Government currently Intercity autobus and railway Movement relaxed. Public gatherings limited house is now in effect for an recommends limitation of domestic passenger transportation is to 100 persons. indefinite period. According to the movement. prohibited. relevant government decree, the Public Health Authority strongly place of residence or stay may only recommends to all persons aged 65 be left for reasons provided in the and above to minimize their external decree, e.g.: to perform work or environment movement professional obligation; to access to health care services; to supervise and escort children; to provide assistance to persons who are unable to care for themselves or need assistance (such as minors, the elderly and the sick); to pursue individual leisure sports activities or leisure walking; to have marriage and funeral in a narrow family circle; to shop at grocery stores selling daily consumer goods, in drugstores and markets; to perform religious activity; to access certain beauty services, administration requiring personal appearance, including administrative, banking, financial, insurance and postal services, if absolutely necessary; to take care of animals, walking of pets

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Czech Republic Hungary Slovakia Ukraine in public areas; to visit a gas station etc. Furthermore, everyone is required to reduce social contact with other people to a minimum and to keep themselves at least 1.5 meters away from the other person, except those in the common household. It is forbidden to stay in a catering facility except for those employed there. The exception is the delivery of takeaway food. Persons over 65 may visit a grocery store, drugstore, market, or pharmacy only between 9 a.m. and noon. During this period only, persons over 65 may stay at the aforementioned premises, except for those employed there. Violating these specific restrictive measures are now considered to be an infraction. The above rules on limitation of movement were partially lifted in the countryside of Hungary. However, in and Pest County, the limitations are in place as before.

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Czech Republic Hungary Slovakia Ukraine Government decree no. 181/2020 (V.4.) published on 4 May 2020 contains special rules of electronic control of persons being in official home quarantine. According to the said decree, compliance with the rules of home quarantine is monitored by the police. In case of adult natural persons, monitoring the compliance with the rules of official home quarantine using electronic software capable of tracking the movement of the person concerned and transmitting his or her facial image and health data will be ordered by the epidemiological authority, provided that such person declares that the conditions for installing the software are available, has the appropriate means to do so, and voluntarily agrees to install and use the software. The epidemiological authority may request the assistance of the police in order to obtain such declaration. If the person subject to official home quarantine does not make the above declaration, then compliance with the rules of official home quarantine will be closely monitored by the

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Czech Republic Hungary Slovakia Ukraine police through a personal presence. Based on the decree, the police will immediately notify the epidemiological authority if the person concerned breaches their obligation to install or use the software. In case of non-compliance with the obligations, the authorities may impose a fine of up to HUF 3,000 or an official warning.

2.2 Closures Restrictive measures have been Prohibition of physical presence in All public places and retail facilities No public events permitted and (public places, relaxed. kindergartens schools, and closed with the exception of groceries, businesses which are supposed shops etc.) Limited restrictions are still in place universities. Closing a number of drugstores, pharmacies, medical to receive visitors must be shut for: i) restaurants, cafés, cafeterias public offices. devices dispensers, optician shops, down, subject to limited etc. (can serve only outdoors); and Only the following types of shops newspaper shops, veterinary clinics, exceptions including groceries, ii) certain services (services may be open between 15:00-06:00: animal feed shops, telco operators, pharmacies, wholesale food disrupting the integrity of human groceries, pharmacies, shops that banks, post offices, insurance and traders, agri-food markets, skin, e.g. tattoo saloons). sell hygiene products, tobacco leasing services, e-shops with pick-up hospitals, technical maintenance shops and gas stations. All other option, delivery services, laundry and and repair business, financial shops must close after 15:00. dry cleaning services, fuel stations, services, banks and post offices. funeral, services, crematoriums, car, With effect from 11 May 2020 Only the employees may stay in tire and towing services, technical some measures were relaxed, in restaurants, bars, cafés between inspection and emission control particular, the following 15:00-06:00 (except for take-away providers, computer and businesses were allowed to services). telecommunication equipment repair reopen: other retail shops in Only the employees may stay in services, taxi (delivery of goods only), addition to groceries (other than cinemas, theatres and libraries. legal services, locksmith shops, waste malls), dental offices, outdoor Visiting these facilities as consumer collection points, bike shops, textile areas of cafes and restaurants, is prohibited. and haberdashery shops. media related businesses, attorneys, notaries and auditors.

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Czech Republic Hungary Slovakia Ukraine No public events shall be held, The above shops and services are not State authorities and courts except for religious events, civil limited by sales area size. continue to operate. Parties to marriage and funerals. Sport events Subject to the internal sales area limit court proceedings may choose to can only be held behind closed of 2000 square meters stores of participate remotely. Also, the doors. court may prohibit a building materials, installations and representative of a party to be Official documents issued by wiring materials, hardware, paints, physically present at a hearing if Government Offices and District horticulture and gardening equipment the person poses threat for other Offices shall not be handed over are also excluded from mandatory participants in the proceedings. personally at the respective closure. Government Office or District Office, All schools, universities and Department stores and shopping malls they shall be delivered by post. kindergartens are closed shall close all the department except to (distance learning taking place the above. where possible). All shops and service providers allowed to operate are subject to restrictions: a) Client’s mandatory coverage of upper respiratory tract on entry and during stay in sales area. b) Mandatory hand disinfection on entry or provision of disposable gloves on entry. c) minimum distance of 2 meters between waiting shoppers. d) the number of shoppers any one time must not exceed the concentration of one shopper per 25 m2 of the sales area.

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Czech Republic Hungary Slovakia Ukraine e) visible notice on all entrances on the duty to adhere to the above restrictions. Furthermore, time from 9 am to 12 am shall be reserved for persons aged 65 and above. Younger person will not be allowed to enter during the designated time. Groceries, pharmacies and selected vital supplies are closed on Sundays for mandatory sanitation. Provision of certain social services is suspended as of 25 March 2020 until further notice. Restrictions do not apply to long term stay facilities.

3. Measures affecting certain industry sectors

3.1 Any No restrictions except for certain Not (yet) introduced Effective 23 March, the export of No except some anti-epidemic general import/ medicinal products (see 3.4 below) human pharmaceuticals, medical medical goods (see 3.4 below). export devices and in vitro diagnostic devices restrictions is prohibited. Export restrictions do not apply to: 1. human pharmaceuticals producers and production for another state, and 2. producers of medical devices or in vitro medical devices with regard to orders based on contracts concluded

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Czech Republic Hungary Slovakia Ukraine before the declaration of emergency state. 1

3.2 New act has been enacted in order Non-residential lease agreements No measures (yet) in place. Commercial landlords and tenants Commercial to protect tenants under cannot be terminated by unilateral benefit from tax vacations, see landlords/ commercial leases from the termination until 30 June 2020 in 4.1 below. tenant landlords’ termination of the lease sectors that are most affected by the Tenants may be released from agreements solely for a reason of coronavirus outbreak (specifically paying the rent for the period of non-payment of the rent during the tourism, hospitality, entertainment, quarantine if they are not able to relevant period (12 March - 30 gambling, film, performing arts, use the property. June). The protection is applicable event organizer and sport service

to all tenants that prove the non- provider industries). payment of the rent resulted from Furthermore, the rent amounts of the Government measures these lease agreements cannot be adopted in reaction to COVID-19 raised during the emergency pandemic and that provide the situation declared by the Hungarian landlord with sufficient evidence Government, even where the therefor within 15 calendar days underlying lease agreement would following the day the default has provide the possibility to raise the occurred. amount of the rent. New bill that aims to support tenants under commercial leases is now being discussed by the Government (up to 50% of the rent payments could be potentially reimbursed by the CR).

3.3 Banks Act on general loan moratorium NBH announced that the Funding for No measures (yet) in place. Some (save for certain types of loans) of Growth Scheme Go! will be banks provide relief to their clients on three or six months (optional) has launched on 20 April 2020, and the voluntary basis. It is expected that

1 Ministry of Health Measure No. S 02208-2020-SFaLP-2 of 23 March 2020

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Czech Republic Hungary Slovakia Ukraine been enacted. It applies to all current allocation amount will be mortgage payments will be suspended Below is a summary of the Act debtors under loan agreements raised by HUF 1,000 billion to without sanctions. that was adopted on 13 May 2020 concluded with business/business ensure affordable financing for Commercial banks restrict loans (or but is yet to enter into effect. In operators. domestic small- and medium-sized tighten conditions) to entrepreneurs relation to retail loans, lenders are Pressure on commercial banks not enterprises. and SMEs. not allowed to charge default interest and penalties in relation to distribute dividends. The new Scheme is identical to the State-owned bank SZRB provides to payments due within the period Countercyclical capital buffer rate earlier phases of the FGS in terms special purpose loans to SMEs to from 1 March 2020 through the was decreased to 1.00 % with of its key parameters and the overcome hardship caused by the last day of the calendar month effect as of 1 April 2020. method of implementation. The NBH emergency situation. will continue to provide refinancing (inclusive) in which the quarantine loans to credit institutions at a zero will be terminated. interest rate, and interest to be paid Lenders are also not allowed to by SMEs will continue to be increase interest: maximum of 2.5 percent. ▪ under retail loan agreements Investment loans (including leasing) until the last day of the calendar will still be available; with a month (inclusive) following the maximum maturity of 20 years; month in which the quarantine furthermore, there will be working will be terminated; and capital loans, with a wide range of ▪ under the corporate loan purposes and a maximum maturity agreements until the Covid-19 of 3 years. The maximum amount of related measures are in place. facility available for an SME will be Lenders are also not allowed to HUF 20 billion. Banks will have to enforce their rights under retail have their credit approvals within loan agreements if a borrower’s two weeks, in order to ensure that breach concerns a payment due companies will be financed as soon within the period from 1 March as possible. 2020 through the last day of the The total amount available under the calendar month (inclusive) in corporate bond purchase which the quarantine will be programme, the Bond Funding for terminated.

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Czech Republic Hungary Slovakia Ukraine Growth Scheme (“BFGS”), will The central bank has encouraged remain unchanged at HUF 450 commercial banks to billion, however NBH may modify accommodate requests for the conditions of BFGS to increase restructuring of businesses whose liquidity in the corporate bond revenues declined because of the market. The Bank’s maximum COVID situation. amount of exposure to a given group . of corporations has been raised from HUF 20 billion to HUF 50 billion. The maturity of securities eligible for purchase under the BFGS has been modified from 10 years to 20 years. Two government resolutions were recently published in the Hungarian Gazette in which the Hungarian Government initiated separate loan programs with the involvement of the Hungarian Development Bank (“MFB”) (MFB Crisis Loan Program and MFB Competitiveness Program) and guarantee program (MFB Vis Maior Guarantee) for SMEs and large enterprises. MFB Crisis Loan Program: ▪ SMEs may apply for loans for working capital, investment, operating and refinancing purposes. ▪ The State guarantees 80% of the principal amount of the facility.

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Czech Republic Hungary Slovakia Ukraine ▪ Finance terms of up to ten years for investment loans and up to three years for working capital loans and refinancing loans. ▪ The maximum amount of a loan facility available for an SME is HUF 150 million (approx. EUR 428,570). ▪ Total available amount under this program is HUF 180 billion (approx. EUR 514 million). MFB Competitiveness Program: ▪ SMEs and large enterprises may apply for loans for working capital, investment, acquisition, operating and refinancing purposes. ▪ The State guarantees 80% of the principal amount of the facility. ▪ Finance terms of up to fifteen years for investment, acquisition, operating and refinancing loans and up to three years for working capital loans. ▪ The minimum amount of a loan facility available for SMEs and large enterprises is HUF 1 billion (approx. EUR 2.85 million) the maximum amount is HUF 10 billion (approx. EUR 28.5 million).

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Czech Republic Hungary Slovakia Ukraine ▪ Total available amount under this program is HUF 150 billion (approx. EUR 428 million). MFB Vis Maior Guarantee: ▪ SMEs and large enterprises may apply for guarantees for working capital loans and investment loans; ▪ The State guarantees 90% of the principal amount of the facility. ▪ Maximum tenor of the guarantee is six years ▪ Maximum amount of the guaranteed facility is HUF 10 billion (approx. EUR 28.5 million); ▪ Total available amount – HUF 50 billion (approx. EUR 128 million).

3.4 Pharma The supply of selected registered During the period of state of Not (yet) restricted. Export of some anti-epidemic and medical medicinal products intended for emergency, the export from Imported goods for epidemics shall be medical goods is prohibited. Most devices the Czech market to the EU Hungary, within the framework of exempt from VAT and customs duties. recently, ethanol has been added member states and the export of wholesale activities in relation to to the list of the restricted goods. The obligation to register with Public these medicinal products to medicinal products or any other Sector Partners Register is temporarily countries other than the EU distribution activities on commercial cancelled for the suppliers of goods member states is prohibited. scale of hydroxychloroquine and services concerning the protection sulphate and of medicinal products of life and health. and pharmaceutical intermediates that contain the active substance hydroxychloroquine sulphate is prohibited with few exceptions.

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Czech Republic Hungary Slovakia Ukraine The government facilitated the conditions of pre-license use of certain medicines. Care home institutions shall be treated in the same way as hospitals in connection with the delivery of health oxygen to the patient.

3.5 Other Mandatory wearing of face masks Regulation of out-of-shop Only as described above – leisure applies with certain exceptions commercial activities (e.g. delivery) industry subject to mandatory (children up to 2 years, children in for the benefit of the general public shutdown. All automotive kindergartens up to 7 years, have been simplified. manufacturers and their supply chains persons in a closed vehicle, etc.) Regulation of public procurement in closing or expected to close in few relation to equipment necessary to days (but not due to mandatory prevent and cure coronavirus have shutdown). been simplified. Forehead temperature will be Payment service providers do not measured at all hospitals, factories, apply strong customer shops and places where people authentication if the individual concentrate. Companies breaching this amount of the electronic payment measure may be ordered to close. transaction does not exceed HUF 15,000 (approx. EUR 42). This means that the threshold of the contactless payment is increased up to 15 000 HUF. No parking fee is payable for the use of public spaces by vehicles in the capital.

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Czech Republic Hungary Slovakia Ukraine University students under certain conditions are entitled to an untied loan of up to HUF 500,000 (approx. EUR 1,400) to cover living expenses. A person participating in adult education can apply for an untied loan of up to HUF 1,200,000 (approx. EUR 3,400). The Government has imposed a special tax on certain sectors of retail trade. The tax rate was set in a band depending on the amount of the tax base (i.e. the yearly net turnover).

4. Subsidies and financial support available from governmental side

4.1 General for The Government expects to So far only sector specific measures Corporate tax and advance payments Below is a summary of the Act businesses provide a direct financial support have been announced. is automatically suspended and that was adopted on 13 May 2020 and employers for business amounting to around A general governmental bail-out is businesses will not be sanctioned if but is yet to enter into effect. CZK 100 billion and indirect currently under preparation. taxes/advances are repaid and returns SMEs are not required to pay the support, mainly in the form of loan filed by 31 December 2020. payroll tax for the period from 1 Employers may order a ‘working guarantees, in the amount of March through 31 May 2020. time banking’ of up to twenty-four VAT payments / returns are not approx. CZK 900 billion. month. suspended automatically, but subject Taxpayers may not be held liable Main types of currently available to individual request. Tax authorities for the failure to pay the payroll With the exception of some sectors support: declared they will be benevolent and taxes for the period from 1 March (e.g. heavy industry), companies grant suspensions upon request; 2020 through the last day of the State guarantee for operating may be eligible to competitiveness- calendar month (inclusive) in loans from commercial banks with enhancing aid in the form of a non- Government will not en bloc which the quarantine will be a value up to CZK 15 million repayable budget grant the amount abolish/suspend the obligation of terminated. (approx. EUR 548,948) and for of which is maximum EUR 800,000 employers to pay social insurance financial aid to cover interest

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Czech Republic Hungary Slovakia Ukraine payments (COVID II Program and but it is also adjusted to the amount levies as well as public health Land tax, real estate tax for non- COVID Program are of investments. The aid is provided insurance levies. residential premises and rent currently at place) through a tender. Under act adopted on 26 March 2020 payments for state and municipal ▪ For small and medium-sized The deadline of tax assessment, following support is currently available: land plots companies which had to declaration and payment obligations ▪ Entitlement to “quarantine sick pay” for the period from 1 March limit/close operations due to the relating to (i) corporate tax, (ii) taxes in case of ordered quarantine through 31 March 2020 will not be measures implemented in the of small businesses, (iii) income tax measure would be paid from the first charged. fight against the coronavirus of energy suppliers, (iv) local day (instead of 11th day currently Taxpayers may not be held liable pandemic; business tax, and (v) innovation applicable) of sick leave by the state for the failure to pay taxes for the ▪ Those that will use the contribution which would be due Social Insurance Company. period from 1 March through the between April 22, 2020 and guaranteed commercial loan ▪ Employers forced to shut down or last day of the calendar month September 30, 2020, is extended solely to make operating cost employers with substantially reduced (inclusive) in which the quarantine until 30 September 2020. The payments, e.g. salaries, rent, turnover will have a right to job will be terminated. deadline for preparing, publishing, utilities, supplier/customer retention grants. Detailed conditions depositing and publishing, as well as invoices, material, supplies. / programmes under which the for submitting the annual report is grants will be paid by Ministry of Job Retention Schemes (Antivirus extended until 30 September 2020. Program) Labour / Labour Offices are yet to be Entitlement to health care services: prepared and announced . ▪ Eligible employers may apply for Employees on unpaid leave due to a contribution for the partial the state of emergency are entitled reimbursement of remuneration to health care. In such a case, from costs paid to employees as a 1 May 2020, until the 12th day of the result of an inability to allocate month following the reference work due to certain barriers on month, the employer shall the part of the employer or the determine, declare and pay the employee from 12 March 2020 health service contribution for the onwards; employee. ▪ Employers may apply under two Tax administration rules: Based on schemes: Mode A which applies the classification performed during to situations of forced traffic and after the emergency, the

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Czech Republic Hungary Slovakia Ukraine restrictions and quarantine – the taxpayer's qualification as a reliable Labour Office of the Czech taxpayer cannot be revoked due to Republic will reimburse 80% of the breach of the tax liability due the wage compensation during the emergency or within thirty (including levies) paid to the days thereafter. affected employees / Mode B which applies to related economic difficulties – the Labour Office of the Czech Republic will reimburse 60% of the wage compensation (including levies) paid to the affected employees. Exportní garanční a pojišťovací společnost, a.s may provide guarantees for the repayment of loans (for operating expenses, working capital or innovation initiatives) to exporters, manufacturing and commercial enterprises. Tax liberation packages, including e.g. mass exemption from penalty fees for the late filing of income tax returns by natural persons and legal entities through to 1 July, 2020, remission of the June advance payment for the income tax of natural persons and legal entities, flat waiver of late

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Czech Republic Hungary Slovakia Ukraine submission of real estate property tax.

4.2 To specific The Ministry of Agriculture Taxpayers carrying out the following It is expected that banks and insurance State and municipal hospitals, sectors approved an increase in funds for activities as main activity are exempt companies will be exempted from so producers of ethanol and the existing programs of the from paying public dues on wages called “special levy”, which was in disinfectants, importers of anti- Support and Guarantee Farming with respect to the period between principle an additional tax on selected epidemic medical goods benefit and Forestry Fund (SGFFF) and March and June 2020: (i) taxi financial institutions. from certain tax exemptions. the Countryside Development operation; (ii) accommodation; (iii) Program. Within the existing food and beverage service activities; programs SGFFF refunds a part of (iv) creative, arts and entertainment prescribed interests from the activities; (v) sports activities and commercial loans. In the case of amusement and recreation activities; loans granted directly by SGFFF, it (vi) gambling and betting activities; is possible to apply for the release (vii) motion picture, video and or reduction of cash deposits television programme production, pledges, which now serve as a sound recording and music security of the loans granted. It will publishing activities; (viii) also be possible to postpone organisation of conventions and installment payments of a principal trade shows; (ix) publishing of of loans granted by SGFFF, newspapers; (x) publishing of however always based on an journals and periodicals; (xi) individual assessment. programming and broadcasting The Ministry of Industry and Trade activities; (xii) travel agency, tour has approved financial support for operator and other reservation small and medium-sized service and related activities; (xiii) companies who produce physical well-being activities; (xiv) healthcare equipment, e.g. when inland passenger water transport; they acquire new technologies and (xv) plant propagation; (xvi) growing equipment for the production of of other non-perennial crops; (xvii) growing of other perennial crops;

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Czech Republic Hungary Slovakia Ukraine healthcare equipment and (xviii) wholesale of flowers and personal protection equipment plants; (xix) retail sale of flowers, Also, financial support for small, plants, seeds, fertilisers, pet animals medium and large enterprises and pet food in specialised stores; implementing a project with a fast (xx) hunting, trapping and related and positive effect in the fight service activities; (xxi) distilling, against COVID 19 and its rectifying and blending of spirits; subsequent impact has been (xxii) manufacture of wine from approved. The support can be grape; (xxiii) manufacture of beer; obtained e.g. to acquire materials (xxiv) growing of grapes. for the production of protective and "Main activity" shall mean as an healthcare equipment; 2) for activity from which the taxpayer salaries paid to employees generated most of its revenue, but at participating in the production. least 30% during the 6 months preceding the entry into force of the respective government decree. The payment obligation on health insurance contributions in certain sectors is reduced. No contribution shall be paid to tourism development March, April, May and June for certain economic operators. Tourist tax suspension and related budgetary provisions: Tourist tax after a guest night spent between 26 April 2020 and 31 December 2020 does not have to be paid by the taxable persons liable to collect the tax, neither have to collect or pay,

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Czech Republic Hungary Slovakia Ukraine but they must declare the established but not collected tax to the tax authority. Certain low tax-bracket enterprises shall be exempt from paying their fixed-rate tax obligations. The Government supports the employment of those working on the field of research and development in the framework of the Economic Protection Action Plan. The monthly amount of the aid given by the Hungarian state may not exceed HUF 318,920 (approx. EUR 900) per employee. The duration of the aid is maximum three months.

4.3 To Employees who need to take care Based on a government decree, the Employees who need to take care of a ▪ Additional payments to employees of a child under the age of 13 entitlement to childcare allowance in child under the age of 11 years (if healthcare personnel and and individuals years instead of working (e.g. for respect of the care and education of disabled up to 18 years) instead of workers contributing to anti- closure of schools) are entitled to a children is extended until the state of working (e.g. for closure of schools) pandemic measures. caregiving allowance in the emergency ceases. Eligibility for are entitled to a caregiving allowance ▪ Salaries to healthcare amount of 60% of the daily childcare allowance is extended to for the whole period of such closure personnel and workers assessment base per calendar day those beneficiaries whose eligibility (instead of 10 days applicable so far). contributing to anti-pandemic for the period until the schools are would cease on or after the date of Application process for certain social measures will be temporarily opened again. declaration of the state of security benefits has been already exempted from taxes Freelancers in the same situation emergency. streamlined, e.g. right for caregiving (according to the Law adopted are also entitled to a contribution Under the so called “Kurzarbeit” allowance in case of taking care for a on 13 May 2020 that is yet to provided by state in the amount of scheme, reduced working hours are child under the age of 11 (if disabled enter into force). 424 CZK for each day of also supported by the Hungarian up to 18 years) due to the closure of

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Czech Republic Hungary Slovakia Ukraine quarantine/giving care to a family state. Part of the wages lost due to the schools shall be proved by affidavit ▪ The government will provide member. shorter working hours is reimbursed of respective person and there is no subsidies to cover the cost of Compensation bonus for self- by the Hungarian state under certain need to deliver doctor´s confirmations. utilities for those individuals employed persons: a one-off conditions. The support is free of who have been made public charges and lasts for three redundant. contribution in the amount of CZK 25 000 for self-employed persons months. ▪ New procedure for provision who were active as of 12 March of allowances to employees 2020 and their business was who suffered from salary negatively influenced by the decrease as a result of shut- occurrence of coronavirus. down has been adopted. Individuals who demonstrably suffer from lack of financial funds are entitled to apply for a one-off financial emergency assistance. Some cities are also offering financial support, e.g. Prague City Hall has thus far made a decision on the deferral of instalment payments for rent in commercial spaces owned by the city and on waiving default interest for late payments.

5. Measures taken by central banks

5.1 Steps 2W Repo rate was decreased by No measures yet. No measures yet. Recently the central bank set a taken with 0.75 % to 0.25 % with effect as of lower refinancing rate. regard to 11 May 2020 (the rate was interest rate decreased for the third time as it was previously decreased by 0.5

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Czech Republic Hungary Slovakia Ukraine (most recent % to 1.75 % and then by 0.75 % to and expected) 1.00 %).

5.2 Steps No steps taken so far, the Czech No measures yet. The central bank is not expected taken or National Bank declared to step in to introduce extraordinary FX expected with should CZK depreciate even measures at this point. regard to local further. currency

5.3 Use of No measures taken up to this No measures yet. The central bank is selling FX to foreign moment, the reserves (almost support local currency. currency USD 150 bil.) might be used to reserves stop further depreciation of CZK.

5.4 Other Pressure on commercial banks, The NBH, at its discretion, The central bank has relaxed the important insurance companies and pension announced a repayment moratorium provisioning rules and certain steps management companies not to in respect of loans provided under other capital requirements, distribute any dividends. the Funding for Growth Scheme suspended onsite inspections of Credit ratio limits for new ("FGS") and approved the banks and other financial mortgages have been relaxed restructuring of the loans and institutions, rescheduled stress (save for “investment” mortgages). rescheduling of repayments, thus testing of the banks for a later LTV ratio (the size of the loan small- and medium-sized date. relative to the value of the pledged enterprises participating in FGS will The minimum authorized capital property) has been increased from be exempted from their repayment of a bank has been decreased to 80 to 90 per cent, DSTI ratio (total obligations under the FGS loans UAH 200,000,000 (according to debt service relative to net monthly until the end of this year. the Law adopted on 13 May 2020 income) has been increased from that is yet to enter into force). 45 to 50 per cent and DTI ratio (debt relative to net income) has been cancelled.

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Czech Republic Hungary Slovakia Ukraine

6. Other

6.1 Czech National Bank https://www.kormany.hu/en/the- https://www.korona.gov.sk/ (Only https://www.kyivpost.com/ Trustworthy Czech Government prime-minister/news/we-are- sporadic English announcements https://en.interfax.com.ua/ English suspending-principal-and-interest- available), Czech Chamber of Commerce language payment-liabilities-on-loans sources https://www.kormany.hu/en/prime- minister-s-office/news/repayment-of- baby-expecting-and-student-loans- has-also-been-suspended https://www.kormany.hu/en/cabinet- office-of-the-prime- minister/news/from-this-afternoon- shops-are-not-allowed-to-remain- open-beyond-3-00-p-m-not- including-food-stores-and- pharmacies https://www.kormany.hu/en/the- prime-minister/news/we-are-sealing- hungary-s-borders-to-passenger- traffic-and-banning-events

6.2 Other The employer may modify the All schools, universities and The following terms have been already communicated work kindergartens are closed until further extended for the period of schedule without taking into notice (distance learning taking place quarantine: consideration any deadline for such where possible). ▪ warranty terms in the B-to-B modification. Since 25 March until further notice agreements; The employer may unilaterally covering the upper respiratory tract ▪ statute of limitation, including instruct the employee to work from routes (mask, respirator, veil, shawl, in relation to labor disputes;

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Czech Republic Hungary Slovakia Ukraine home by way of home office or scarf etc.) is mandatory in publicly ▪ validity term of and term for teleworking. accessible places. making a claim under a The employer may take the Upon written reasoned request of corporate guarantee necessary and justified measures to Public Health Authority, Public Health (suretyship); and check the health condition of the Authority shall have the access to the ▪ procedural terms in employees. location data of mobile phone users. administrative, commercial The provisions of collective Usage of such data is strictly limited to: (including insolvency) and civil agreements derogating from the a) Statistical usage to prevent and proceedings. above shall not by applicable during model development of threats to The general meetings of the period of the application of the one’s health and life shareholders can be held respective government decree. b) To identify the receivers of Public remotely. Companies that are The employer and the employee Health Authority messages in order required to hold shareholders have been entitled to derogate from to protect one’s health and life meeting before 30 April 2020 to the provisions of the Labour Code approve their annual financial c) To identify mobile phone users in by way of a separate agreement. statements may do so within 3 order to protect one’s health and months following the date of The Minister for Innovation and life. Technology to prevent and mitigate termination of the quarantine. The Public Health Authority shall have the coronavirus epidemic, to protect the right to collect, process and store the health and life of Hungarian such data during the emergency state citizen, to model and analyse the only but in no case after 31 December spread of the coronavirus, is entitled 2020. to access and process any data available. The data request of the General meetings, BoD, supervisory Minister for Innovation and boards and other collective bodies of Technology shall be fulfilled by state companies shall be entitled to adopt and municipal authorities, business decisions per rollam even in case organisations and individuals. when the possibility to adopt decisions per rollam is not envisaged in their No enforcement orders shall be constitutional documents; delivered to the debtors during the state of emergency. Certain

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Czech Republic Hungary Slovakia Ukraine enforcement activities are to be put Pledges must not be exercised until 30 on hold for the period of the special April 2020; legal order. Time limitation periods in the private Moratorium of evictions and sector shall not pass until 30 April suspension of seizures and auctions 2020; in enforcement proceedings. Court hearings may only take place if Tax enforcement procedures and where absolutely necessary. pending shall be paused until the Time periods to perform acts and/or th 15 day following the end of the fillings in the ongoing court state of emergency. Limitation proceedings shall not pass until 30 period of the right of enforcement April 2020; shall also be paused for the same Until 30 April 2020, the public executor period. cannot sell the immovable asset in the The so called “Hospital course of execution. Commanders” were assigned to several hospitals with the aim of ensuring the compliance with rules concerning the epidemic risk and the protection of the health care equipment. The Hungarian Government has settled the rules governing the various legal proceedings in the state of emergency, concerning among others, the rules relating to deadlines, conducting procedural acts, interim measures, the way of submissions and court hearings. As a general rule, if a procedural deadline expires in civil proceedings

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Czech Republic Hungary Slovakia Ukraine (including extrajudicial ones), administrative proceedings (including extrajudicial ones), in the period between the entry in force of the extraordinary adjournment (i.e. 15 March 2020) and 15 April 2020, then such deadline will be extended to 30 days after the entry into force of the said Government Decree (i.e. 30 April 2020). The Government Decree also applies to proceedings ongoing at the date of its entry into force. The court of registration may take only documentary evidence. The Company Information and Electronic Company Registration Service may provide any company information or other service exclusively by electronic means. Non-contentious notarial proceedings: With the exception of, among others, registration into the security interest register (its modification, deletion) and making a statement of identity related to such registration, the notary may postpone a procedural act requiring attendance in person to be performed by a date falling within

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Czech Republic Hungary Slovakia Ukraine the period of state of emergency and shall notify the persons concerned of this fact; if such a procedural act that was not postponed is missed, the legal consequences of omissions shall not apply. Furthermore, with the exception of a notarial deed containing a testamentary disposition, during the period of state of emergency, the notary may read out loud a notarial deed and perform his notification obligation by means of telecommunication suitable for maintaining continuous audio and video connection. A request to draw up a notarial deed submitted as a paper-based document or orally may also be submitted after the notarial deed is read out loud or at the time of its signing. However, the relevant parties must, possibly on the same day, sign the read-out-loud notarial deed in person in front of the notary public. The Hungarian Parliament adopted Act XII of 2020 on the containment of coronavirus in order to enable the Government to take all extraordinary measures necessary for the

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Czech Republic Hungary Slovakia Ukraine prevention of the COVID-19 infection, and for the elimination of its consequences. This act stipulates that during the period of the state of emergency, the Government may, in order to guarantee that life, health, person, property and rights of the citizens are protected, and to guarantee the stability of the national economy, by means of a decree, suspend the application of certain Acts, derogate from the provisions of Acts and take other extraordinary measures. The Hungarian Government may exercise its power for the purpose of preventing, controlling and eliminating the human epidemic, and preventing and averting its harmful effects, to the extent necessary and proportionate to the objective pursued. The Hungarian Parliament authorised the Government to extend the applicability of the government decrees adopted in the state of emergency until the end of the period of state of emergency. The Hungarian Parliament may withdraw the authorisation of the

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Czech Republic Hungary Slovakia Ukraine government to prolong the effect of the government decrees before the end of the period of state of emergency. Otherwise, the repeal of the Authorization Act shall be decided by the Hungarian Parliament upon the end of the period of state of emergency. The Hungarian Government established three funds in the central budget: an Epidemic Control Fund, an Economic Protection Fund and a Fund for Disease Prevention aid from the European Union. Certain local taxes and governmental subsidiaries are redirected to these funds. For disease prevention purposes, the Operational Staff may request information from any organisation, legal entity or unincorporated entity that is required to comply with such request. The Government authorized the minister responsible for transportation to establish a different traffic order, traffic restriction or a traffic ban if needed. The Government simplified certain rules regarding the meeting and

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Czech Republic Hungary Slovakia Ukraine decision-making of the supreme body of legal persons, e.g. holding meetings by means of an electronic means of communication, use of electronic signatures etc. Due to the remote learning scheme introduced earlier, the Government settled and facilitated the rules of using copyrighted materials during online lessons. No license is now needed if copyrighted works are used for the purpose of online learning provided that it does not happen on a commercial scale. The Government has for the first time placed a public limited company under state supervision. Under this measure, a Government Commissioner appointed will take over the right to decide on several matters falling within the competence of the general meeting of the company.

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