March 18 (SeeNews) - North Macedonia's government said on Wednesday it will grant interest-free loans to small businesses affected by the coronavirus pandemic and pay social contributions for employees in the worst-hit sectors of the economy for three months.
The Development Bank of North Macedonia will provide 5.7 million euro worth of zero-interest loans to micro, small and medium-sized enterprises (MSMEs) affected by the coronavirus, the government said in a statement unveiling a set of economic measures for supporting the economy during the coronavirus crisis.
Companies can receive interest-free loans of 3,000 to 30,000 euro, depending on the number of employees. The loans will have to be repaid in two years with a grace period of six months.
Mila Carovska, vice prime minister for economic affairs, said that the government will also subsidise social contributions for employees in the companies operating in tourism, transport, hospitality and other sectors most affected by the coronavirus outbreak.
This measure foresees subsidising up to 50% of the social contributions due for North Macedonia's average salary in 2019. It will be in force from April through June.
In order to qualify for the subsidies, companies should not reduce the number of their employees below the February 2020 level. In addition, the companies should not distribute dividend in 2020, nor award bonuses after the measure takes effect.
Only companies that will book profit in 2020 will reimburse 50% of the received subsidy before taxation.
The number of confirmed coronavirus cases in North Macedonia reached 35 on Wednesday, after four more citizens tested positive for the infection.