Slovenia: Government adopts sixth coronavirus bill

Slovenia: Government adopts sixth coronavirus bill

Last night, the Government of Slovenia adopted the proposal for the sixth anti-coronavirus bundle of measures, which address issues affecting the industry sector, hit the harshest by the second wave of the epidemic. Among the new and long-awaited provisions is the reimbursement of fixed costs.

As the Minister of Economic Development and Technology Zdravko Počivalšek emphasized during the presentation of the law, the government was looking to get the sixth package of measures under way as soon as possible, as the second and extremely high wave of the epidemic resulted to companies facing obstacles not covered by previous bills. “We in the Ministry of Economic Development and Technology sought solutions for them in close cooperation with economic organizations, because we are aware that the coming months will be very demanding for the Slovenian economy and that timely state assistance is especially important”.

Key measures of the sixth coronavirus bill include extending subsidies for furloughed and part-time workers, extending the credit moratorium, simplifying the liquidity guarantee scheme, encouraging investments by companies, postponing business leases and partially replacing fixed costs.

In an important innovation, the government sought a solution that would best solve the companies’ problems and at the same time simplify the administrative aspect.

Under the bill, businesses will be able to receive funds to cover fixed costs for the period from October 1 to the end of this year. Legal and natural entities who were registered before September 1, 2020 and have at least one employee, as well as self-employed and management partners, will be eligible for this measure. The eligibility threshold will be a drop in the annual revenues of candidate businesses by at least 40 percent. The amount to which companies will be entitled will be calculated based on a certain percentage of sales revenue in 2019. Based on the analysis of the expert advisory group, fixed costs are estimated at 10% of sales revenue, which is slightly less than the percentage of annual revenue.

According to the above, those businesses that estimate their revenues will fall by 40 to 70% in the period from October to December this year, will receive 0.6 percent of annual sales revenues. Those whose turnover will fall by more than 70% will receive 1.2 percent of annual sales revenue.

An additional condition is that, under this measure, financial aid can amount to a maximum of EUR 1,000 per month per employee for the said quarter. The maximum amounts that businesses can receive are limited to three million euros or up to 800,000 euros for those companies established after October 1, 2019.

With the help received, businesses will be able to cover rental costs, fees for the use of construction land, insurance and energy costs.

With the sixth package of measures, the government will also allow companies to conduct virtual meetings of shareholders and meetings of supervisory bodies. “We have determined how the voting and participation in the sessions take place, and we have changed the decision in the law regarding the verification of identity at the virtual assembly”, Počivalšek explained.

The period for submitting a request for a moratorium on loan repayment in the Ministry of Economy for companies in difficulty will also be extended. They will be able to apply no later than 12 months after the end of the epidemic is declared, while borrowers will apply to the public fund for a moratorium no later than June 30, 2021. /ibna