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

This table reflects the situation on 24 March 2020

Central and Eastern Europe

Czech Republic

1. Travel Restrictions

1.1 Incoming Closed borders for foreigners not Passenger entry ban from abroad, State of emergency. Entry is Subject to a few exceptions, no living in the CR. except for Hungarian citizens. prohibited to all foreigners who do entry allowed for foreign nationals Mandatory quarantine of 14 days not have residence permit, with and stateless persons. when entering from high risk minor exceptions (diplomats, cargo countries (151). transport drivers). All persons returning home from abroad are ordered 14-day mandatory quarantine

1.2 Outgoing Closed borders for citizens (except Not implemented yet. Leaving Slovakia is allowed. No travel possible. for those working near the borders), foreigners living in the may leave but cannot enter back.

2. Other Restrictions

2.1 Free Prohibited. Permitted movement The Hungarian Government Not restricted. Government Intercity autobus and railway Movement limited to traveling to work, buying requested people older than 70 not currently recommends limitation of passenger transportation is groceries, necessary errands and to leave their home. This request is domestic movement. prohibited. occasional walks in parks/nature. currently not an official movement restriction.

1 For current list of countries refer to: https://koronavirus.mzcr.cz/en/high-risk-countries/

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Czech Republic Hungary Slovakia Ukraine

2.2 Closures Almost all shops, restaurants, Prohibition of physical presence in All public places and retail facilities Subject to exceptions, no public (public places, public places etc. closed. kindergartens schools, and closed with the exception of events permitted and all retail shops etc.) universities. Closing a number of groceries, pharmacies and selected businesses must be shut down. public offices. vital supplies and services. All schools, universities and Only the following types of shops kindergartens are closed (distance may be open between 15:00-06:00: learning taking place where groceries, pharmacies, shops that possible). sell hygiene products, tobacco shops and gas stations. All other shops must close after 15:00. Only the employees may stay in restaurants, bars, cafés between 15:00-06:00 (except for take-away services). Only the employees may stay in cinemas, theatres and libraries. Visiting these facilities as consumer is prohibited. No public events shall be held, except for religious events, civil marriage and funerals. Sport events can only be held behind closed doors. Official documents issued by Government Offices and District Offices shall not be handed over personally at the respective Government Office or District

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Czech Republic Hungary Slovakia Ukraine Office, they shall be delivered by post.

3. Measures affecting certain industry sectors

3.1 Any general No restrictions except for medicinal Not (yet) introduced Not (yet) introduced No import/ export products (see below) restrictions

3.2 Commercial Almost all shops and restaurants Non-residential lease agreements No measures (yet) in place. Commercial landlords and tenants landlords/ tenant closed. cannot be terminated by unilateral benefit from tax vacations, see 4.1 termination until 30 June 2020 in below. sectors that are most affected by the coronavirus outbreak (specifically tourism, hospitality, entertainment, gambling, film, performing arts, event organizer and sport service provider industries). Furthermore, the rent amounts of these lease agreements cannot be raised during the emergency situation declared by the Hungarian Government, even where the underlying lease agreement would provide the possibility to raise the amount of the rent.

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Czech Republic Hungary Slovakia Ukraine

3.3 Banks Pressure on commercial banks not Unless the parties agree otherwise, No measures (yet) in place. Some No penalties under consumer loans to distribute dividends. during the period of the state of banks provide relief to their clients for the period from 1 March through emergency, the principal, interest on voluntary basis. It is expected 30 April 2020, no interest increase and fee payment obligations of a that mortgage payments will be under consumer loans for the borrower under any credit, loan and suspended without sanctions. period from 1 March through 31 financial leasing agreement May 2020 provided by a lender in a business- like manner shall be modified so that the debtor will receive a payment extension regarding its principal, interest and fee payment obligations under its agreement. The loan agreements will be modified automatically with regard to the payment moratorium and the maturity of the loan agreements will be extended except if the parties agree otherwise. The period of the Payment Moratorium will expire on 31 December 2020, which period may be further extended by the Government. The NBH published that it expects banks to implement the measure in a way that the monthly debt payment obligation of the debtors shall not increase after the moratorium has been terminated.

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Czech Republic Hungary Slovakia Ukraine In case of consumer loans not secured by collateral, the total annual percentage rate of charge may not exceed the central bank base rate plus five percentage points.

3.4 Pharma and No re-export of medicinal products Not (yet) restricted. Not (yet) restricted. Export of some anti-epidemic medical devices out of the Czech Republic allowed. medical goods is prohibited.

3.5 Other Restricted agenda of public Regulation of out-of-shop Only as described above – leisure authorities and limited business commercial activities (e.g. delivery) industry subject to mandatory hours. for the benefit of the general public shutdown. All automotive have been simplified. manufacturers and their supply Regulation of public procurement in chains closing or expected to close relation to equipment necessary to in few days (but not due to prevent and cure coronavirus have mandatory shutdown). been simplified.

4. Subsidies and financial support available from governmental side

4.1 General for The Government currently expects So far only sector specific Draft measures expected to be SMEs are not required to pay the businesses and to provide a direct financial support measures have been announced. approved in few days – mainly tax- payroll tax for the period from 1 employers for business amounting to around related, such as suspension of tax March through 30 April 2020. CZK 100 billion (in a form of e.g. payments and the extension of Land tax, real estate tax for non- wage compensations, remission of deadlines. residential premises and rent levies, financial injections) and payments for state and municipal indirect support, mainly in the form land plots for the period from 1 of loan guarantees, in the amount March through 30 April 2020 will not of approx. CZK 900 billion. be charged. Interest-free financing up to CZK 15 million is available for small and

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Czech Republic Hungary Slovakia Ukraine medium-sized enterprises whose economic activity is limited due to coronavirus and related preventive measures.

4.2 To specific The Ministry of Agriculture is Taxpayers carrying out the following It is expected that banks and N/A sectors currently preparing a package with activities as main activity are insurance companies will be measures intended to help farmers, exempt from paying public dues on exempted from so called “special including e.g. a possibility to wages with respect to the period levy”, which was in principle an postpone repayments for existing between March and June 2020: (i) additional tax on selected financial commercial loans. passenger transport by taxi; (ii) institutions. accommodation; (iii) food and beverage service activities; (iv) creative, arts and entertainment activities; (v) sports activities and amusement and recreation activities; (vi) gambling and betting activities; (vii) motion picture, video and television programme production, sound recording and music publishing activities; (viii) organisation of conventions and trade shows; (ix) publishing of newspapers; (x) publishing of journals and periodicals; (xi) programming and broadcasting activities. "Main activity" shall mean as an activity from which the taxpayer generated most of its revenue, but at least 30% during the 6 months

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Czech Republic Hungary Slovakia Ukraine 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. Certain low tax-bracket enterprises shall be exempt from paying their fixed-rate tax obligations.

4.3 To employees Employees who need to take care Draft measures expected to be Additional payments to healthcare and individuals of a child under the age of 10 years approved in few days – currently personnel and workers contributing instead of working (e.g. for closure streamlining of application process to anti-pandemic measures of schools) are entitled to a for certain social security benefits caregiving allowance in the amount from home. of 60% of the daily assessment base per calendar day. for the period of max. nine calendar days (16 calendar day in case of a single parent). The Government has currently proposed to extend this period until the schools are opened again. Individuals who demonstrably suffer from lack of financial funds are entitled to apply for a one-off financial emergency assistance.

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Czech Republic Hungary Slovakia Ukraine

5. Measures taken by central banks

5.1 Steps taken 2W Repo rate was decreased by No measures yet. No measures yet. Recently the central bank set a with regard to 0.5 % to 1.75 % with effect as of 17 lower refinancing rate. interest rate (most March 2020. It is expected the rate recent and might be further decreased in the expected) coming weeks.

5.2 Steps taken or No steps taken so far, the central No measures yet. The central bank is rumoured to expected with bank declared to step in should introduce extraordinary FX regard to local CZK depreciate even further. measures soon. currency

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

5.4 Other Pressure on commercial banks not The NBH, at its discretion, The central bank has suspended important steps to distribute any dividends. announced a repayment onsite inspections of banks and moratorium in respect of loans other financial institutions and provided under the Funding for rescheduled stress testing of the Growth Scheme ("FGS") and banks for a later date. approved the restructuring of the loans and rescheduling of repayments, thus small- and medium-sized enterprises participating in FGS will be exempted from their repayment obligations under the FGS loans until the end of this year.

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Czech Republic Hungary Slovakia Ukraine

6. Other

6.1 Trustworthy Czech National Bank https://www.kormany.hu/en/the- https://www.korona.gov.sk/measure https://www.kyivpost.com/ English language Czech Government prime-minister/news/we-are- s-to-prevent-the-spread-of-covid- sources suspending-principal-and-interest- 19-in-the-slovak-republic/ Czech Chamber of Commerce https://en.interfax.com.ua/ payment-liabilities-on-loans 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 already communicated work kindergartens are closed (distance schedule without taking into learning taking place where consideration any deadline for such possible). modification. The employer may unilaterally instruct the employee to work from

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Czech Republic Hungary Slovakia Ukraine home by way of home office or teleworking. The employer may take the necessary and justified measures to check the health condition of the employees. The provisions of collective agreements derogating from the above shall not by applicable during the period of the application of the respective government decree. The employer and the employee have been entitled to derogate from the provisions of the Labour Code by way of a separate agreement. The Minister for Innovation and Technology to prevent and mitigate the coronavirus epidemic, to protect the health and life of Hungarian citizen, to model and analyse the spread of the coronavirus, is entitled to access and process any data available. The data request of the Minister for Innovation and Technology shall be fulfilled by state and municipal authorities, business organisations and individuals. No enforcement orders shall be delivered to the debtors during the

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Czech Republic Hungary Slovakia Ukraine state of emergency. Certain enforcement activities are to be put on hold for the period of the special legal order. Moratorium of evictions and suspension of seizures and auctions in enforcement proceedings. Tax enforcement procedures pending shall be paused until the 15th day following the end of the state of emergency. Limitation period of the right of enforcement shall also be paused for the same period.

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