Plenkovic calls for caution after 11 new cases of coronavirus identified in Zagreb

Eleven new cases of the coronavirus infection have been identified in Zagreb in the past 24 hours, it was said at a cabinet meeting on Thursday, with Prime Minister Andrej Plenkovic calling for caution due to an increase in the number of people infected, as citizens have become somewhat relaxed.

"After two months of restricted movement and with the arrival of better weather, citizens have probably become a little more relaxed, however, these numbers tell us that caution continues to be necessary," said Plenkovic.

The coronavrius pandemic is not subsiding and the daily number of new cases in the world has never been higher than over the past few days. Yesterday alone, more than 140,000 people around the world were diagnosed with the disease, which is twice as much as at the beginning of April, when the first wave of the epidemic in Croatia was at its peak, added Plenkovic.

The pandemic is deteriorating in our neighbourhood. The number of people infected in the past month in North Macedonia has increased from 370 to 2,500, in Albania from 175 to 600 and in the past ten days the number of active cases in Bosnia and Herzegovina has jumped from 450 to almost 800, while in Serbia it has increased from 220 to 750 cases.

"These are all reasons for increased caution. The majority of the new cases are our citizens returning from Bosnia and Herzegovina or Serbia, and one case was imported from Slovenia. Therefore I appeal to all our citizens to be very careful as has been suggested the entire time," said Plenkovic.

We have to maintain key measures to prevent infections

It is in the interest of the economy and tourism for the state to function normally so we can reactivate the economy as much as possible. This includes reopening the border towards countries with a similar epidemiological situation, he added.

"However, we have to maintain key measures to prevent the disease and that in particular relates to avoiding handshaking, washing our hands, and to disinfection," Plenkovic said and added that these are basic preventative measures that are the most effective.

He announced that next week the government would hold a special thematic debate on preparations for further defence against the coronavirus pandemic.

Plenkovic said that public consultation on the bill on Zagreb's reconstruction had been concluded and 391 comments had been submitted. The relevant portfolios have been engaged to examine all the comments from numerous institutions and citizens, he said.

An application has been launched in the e-citizen system for subsidies of HRK 12,000 from the Construction Ministry and so far 1,070 applications have been received by the Energy Efficiency Fund for condensation boilers. A growing number of applications are being submitted for rental subsidies, and they are being dealt with by the Ministry of State Assets, Plenkovic said.

HAMAG-BICRO loan schemes for entrepreneurs​

Plenkovic told a government session that businesses had made good use of loans intended to help businesses affected by the coronavirus crisis and that so far 5,128 requests worth HRK 343 million had been submitted by 900 businesses.

This is an important government measure that makes it possible to keep jobs, said Plenkovic, noting that the amendment of the schemes would help provide further loans for Croatian entrepreneurs.

Economy Minister Darko Horvat recalled that the government in March adopted changes to HAMAG-BICRO's schemes "ESIF micro and small loans" and "ESIF guarantees", while on April 2 a decision was made to adopt the scheme "COVID-19 working capital loans."

In order to help member-countries make the most of the flexibility envisaged by rules on state support for the business sector affected by the COVID-19 pandemic, the European Commission adopted a document called the Temporary Framework, said Horvat.

Based on that docment, HAMAG-BICRO defined a support scheme which the EC approved on May 12 and which envisages loans in the total amount of HRK 350 million as well as support in the form of guarantees worth HRK 420 million, to be issued until 31 December 2020, said Horvat.

Specifically, EU member-states are enabled to grant state support to micro, small and medium-sized businesses for urgent liquidity needs caused by the COVID-19 pandemic, in the amount of up to €800,000 for COVID-19 working capital loans, said the minister.

Horvat also said that up to one million euros would be provided for ESIF guarantees, as would a combination of measures from the Temporary Framework with support of small value, for urgent liquidity needs.

Government prepared to issue guarantees to shipyards

The government on Thursday adopted a conclusion which expresses its readiness to join in the process of issuing state guarantees the Brodotrogir Cruise, Uljanik Brodogradnja 1856 and MKM Yachts shipyards.

"The signal we are sending today is our determination for Croatia's shipbuilding to continue functioning (...) and that we wish to continue supporting shipbuilding on healthy foundations," Prime Minister Andrej Plenkovic said.

Economy Minister Darko Horvat recalled that the ministry had received a request from Brodotrogir Cruise for a state guarantee to ensure advance payments for two passenger polar cruise ships for two American clients.

The total value of each ship is €39 million, and the clients will make an advance payment of 80% or €31.2 million for each ship,on the condition that the shipyard obtains a bank guarantee for the buyer.

"The shipyard has requested state guarantees in the amount of €24.96 million for each ship, which is 80% of the total advance payment and 64% of the sales price," Horvat explained.

The ministry also received a request from the Uljanik dock for a loan in the amount of €4.33 million to launch production. The loan would be secured with a state guarantee earmarked exclusively to launch production at the newly-founded company at the dock.

The Rijeka-based MKM Yachts dock too submitted a request for a state guarantee for a loan of just over €100 million for the construction of a ship for a client from Malta. The guarantee would cover 80% of the loan or €80.13 million.

These guarantees will be activated in phases so that the amount the government will guarantee cannot exceed 64% of exposure by the end of 2021, after which the state's exposure should decrease to a maximum of 48%, Horvat explained.

"With this conclusion the government provides full support to the shipbuilding industry in Croatia with the aim of continuing production and retaining Croatia's reputation on the shipbuilding market. This conclusion obliges the Ministry of Economy, Entrepreneurship and Craftsto launch proceedings, in cooperation with the Finance Ministry, to issue the requested state guarantees," Horvat concluded.

Text: Hina

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