Coronavirus: Interest-Free Government Loans Available to Cities, Municipalities

As Vedran Marjanovic/Novac writes on the 22nd of April, 2020, shortfalls in the budgets of various Croatian counties, cities, municipalities and state funds created through the measures put in place to assist the economy and residents affected by coronavirus will have interest-free loans from the state made available to them, according to a statement issued by Finance Minister Zdravko Maric recently.

”This instruction applies to all local and regional self-government units, the Croatian Health Insurance Institute and the Croatian Pension Insurance Institute, which have experienced falls in revenue due to deferred payments, reimbursement or exemption from income tax and surtax, in accordance with the special regulation governing the general tax procedure,” reads Minister Maric’s statement.

The Ministry of Finance has published the proper forms for applying for these aforementioned interest-free loans on its website.

According to an announcement from the Association of Cities, the aforementioned assistance offered by the Croatian Government doesn’t regard loans from commercial banks, but rather temporary assistance for liquidity from the Croatian state budget itself. According to that same association, the amount of credit or assistance offered will be determined by the Ministry of Finance itself according to the amount of deferred, rescheduled and written-off tax liabilities for 2019.

Minister Maric’s instructions provided for the payment of these interest-free loans to various beneficiaries in two monthly installments. The first payments of interest-free loans are expected by the end of April 2020.

It’s worth recalling that the possibility of paying interest-free loans to Croatian counties, cities and municipalities, as well as state funds, was introduced by the state into the Law on Execution of the State Budget for 2020 in two amendments to that particular law, implemented by the Government and Parliament since Croatia introduced extraordinary measures to protect against the spread of coronavirus.

Make sure to follow our dedicated section for more on coronavirus in Croatia. Follow our business page for more stories like this one.

 

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