COVID-19: City of Split Announces Measures to Mitigate Negative Effect on Economy

March 19,  2020 – The City of Split announces measures to help citizens and entrepreneurs during the corona crisis. 

In line with national efforts to combat the economic damage caused by the coronavirus outbreak (COVID-19), Split Mayor Andro Krstulovic Opara is bringing a set of measures to help citizens and entrepreneurs affected by the National Civil Protection Headquarters’ decision to stop work. 

Under the Decision of the National Civil Protection Headquarters on prohibiting certain economic activities from today, March 19, 2020, the following applies:

1. Suspension of all foreclosures in the form of halting forced collection within the next 90 days for business entities

2. Suspension of all enforcement by stopping forced collection in the next 90 days for citizens

3. Deferral of utility payments for 90 days for business entities

4. Deferral of utility payments for 90 days for citizens

5. Following the Ordinance on the operation of kindergartens, the price of kindergartens during their suspension is reduced by 50% for all categories

6. Following the Rulebook on Extended and Full-Day Residence in Primary Schools, parents will participate in a fixed amount of HRK 250 per month, and a participation fee of HRK 25 per day during the suspension will not be charged

7. Co-financing of interest costs on loans for craftspeople and small businesses for micro-liquidity loans and COVID-19 working capital loans for small and medium-sized enterprises, up to a maximum of 1% interest

8. City companies Čistoća Split d.o.o. and Vodovod and Sewage d.o.o. delay the payment of services to all natural and legal persons for 90 days. The invoices will be sent regularly, but due in 90 days.

Mayor Andro Krstulovic Opara will propose the following measures, based on the Decision of the National Civil Protection Headquarters on the prohibition of work on March 19, 2020, for certain economic activities:

9. Exemption from lease payments for public areas not in use per the Decision of the National Headquarters on prohibitions, i.e., in the sectors covered by the Decision on prohibiting labor

10. Exemption of lease payments for business premises owned by the City of Split and for premises owned by the City of Split, given to the management of Splitskoj obali d.o.o. and to the Public Institution Sports Facilities, when not in use per the Decision of the National Headquarters on prohibiting labor

According to current estimates, the effect of this package of measures is around HRK 150 million over the next three months.

Additional measures have been considered and are being prepared to assist vulnerable groups of the population, especially towards citizens over the age of 60, which will require an increase in the budget.

Even though the possibility of paying utility bills with a delay of three months has been introduced, the City asks citizens, given the burden on the expenditure side of the Budget and the number of initiated city projects, to fulfill their obligations following their capabilities by paying electronically.

For the stated liabilities for March, no refunds will be made, but an offset will be made with future payments for the period after the measures are abolished.

Also, depending on the development of the situation, Mayor Andro Krstulovic Opara will make a timely decision on the duration of deferrals.

“Considering the economic importance of this health pandemic and in order to mitigate the negative effects of the crisis, we have prepared this set of measures on the delays and the exemptions we propose to the City Council, not wanting to wait for the pandemic to end, and already addressing the consequences that will be reflected in the tourism and the economy as a whole. We have to, and that’s why we are acting now,” emphasized Mayor Andro Krstulovic Opara, and once again urged citizens to responsibly comply with all instructions of the National Civil Protection Headquarters.

To read more about business in Croatia, follow TCN’s dedicated page.

 

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