Selection of laws and programs adopted by the Ukrainian government and regulators to offset the effects of the crisis
In the midst of the coronovirus epidemic, many countries offer vocational assistance programs and bills. for example, America will give $ 350 billion To help small enterprises in China, where billions of funds have already been spent on combating Kovid-19, reduced taxes and rental rates, deferred loan payments have been introduced, on loans. The rate of interest is reduced, and Penalty payment canceled Overdue debt Ukraine also takes measures to save the economy and trade. the version Payspace magazine Selected laws and programs adopted by the government and regulators to offset the effects of the crisis and help businesses.
Tax benefits and unemployment benefits
At an extraordinary meeting of Verkhovna Rada on 30 March, deputies adopted “anti-crisis” Bill No. 3275 on additional social and economic guarantees regarding coronoviruses. By law, the business benefited from the payment of income tax on the condition of financing measures to combat coronovirus. The new bill also takes into consideration:
- Partial Unemployment Assistance. The introduction of assistance is linked to the suspension of enterprises during quarantine. To receive benefits, the unemployed do not need to travel to employment centers in person, but can confirm their status by phone or email
note. Earlier, Ukraine’s Prime Minister Denis Shimgal said that henceforth, registration of the unemployed will be done from day one after submission of the same application for employment center. In this case the purpose of payment will also be done from the first day of registration.
- Explanation of ideal On import tax rebate Medical products and equipment necessary to combat the spread of coronovirus
- Postpone reporting due to quarantine
- Land budget and property tax refund in local budget for April
- Restrictions on increasing interest rate on loans during quarantine
note. Earlier, on the initiative of the National Bank, Verkhovna Rada recovered fines and penalties for late consumer loans in the period from 1 March to 30 April. Further, the first deputy chairman stated that in the present environment, banks should not impose any restriction on customer operations.
- Regulation of remote work and introduction of flexible work schedules
- Increase in penalty for violation of pricing and duties of social goods. The cabinet will set the level of its boundary
In addition, Kiev will allocate 780 million to the UAH to pay salaries to employees of Kiev’s companies. In addition, according to preliminary estimates, the city’s budget loss due to the coronovirus epidemic is approximately $ 1 billion.
In addition to the ban on raising interest rates on loans during quarantine, the first deputy head of NBU Ekaterina Rozhkova said that the National Bank has devised a number of steps that would help ease the tax pressure on business, in particular, credit. Holiday. According to him, in the first phase, banks should offer preferential governance to the business for lending for the quarantine period, and after its completion, jointly decide how to restructure the loans accumulated during this period. to be done. In addition, she noted that banks continue to lend to businesses, most notably, agriculture.
Therefore, the state-owned private bank introduced credit holidays for small and medium-sized businesses and entrepreneurs from March 1, 2020 to the end of May. According to the bank, the new change will affect both past due loans and loans without loans that were not repaid on time.
First Ukrainian International Bank (FUIB) canceled the fees to make external and internal payments in the national currency for the quarantine period.
Support from investors
Earlier, Ukraine’s Prime Minister Denis Shimgal said during an appeal for trade that the cabinet is developing an action program to support businesses and those who lose their jobs as a result of the spread of infection. In particular, he said that the government was negotiating with European partners to support SMEs and agreed with the IMF to support the Ukrainian economy. A government action program is also being developed, which will expand the ways businesses support and lose their jobs.
Therefore, first we wrote that Ukraine reached an agreement with the European Union. The European Union is preparing the first support package of € 80 million, which will be used to finance the health system and support the economy. In particular, part of the funds will be allocated to support small and medium enterprises (SMEs)
In addition, Verkhovna Rada on 30 March adopted a law on the reform of certain banking regulation mechanisms number 2571-d, called “anti-Colombian” and a law on opening a land market. Earlier, President Vladimir Zelensky called these laws “important” for the country, as Ukraine should “receive support from international financial partners in the amount of at least $ 10 billion” after their adoption.
To support Ukraine’s banking system and to overcome the crisis, the National Bank of Ukraine adopted temporary exemptions for domestic financial institutions during quarantine. Among them are:
- Deformation of requirements for compliance with protection buffers and buffers of systemic importance
- Regulatory burden reduction
- Stress testing and postponement of capital buffers
- Cancellation of field inspection of banks
- Cancellation of fee for operation of electronic payment system (BOT)
NBU also introduced new programs to support banks with financing. Financial institutions can send these funds to business representatives and citizens who are most affected by quarantine.
Apart from this, the scheme of National Bank:
- Delay in filing annual financial statements by banks
- Bank Business Model Evaluation Transfer
- Dismantle to strengthen banks in cash
Ukraine’s Ministry of Digital Transformation has launched online business support services. Therefore, the department called entrepreneurs to ask questions about activities during online quarantine – in the corresponding support chat in Telegram (@diaGovernment_bot) and Viber (https://viber.com/dia_bot). It has been reported that support is provided around the clock, and the request processing time is up to 15 minutes.
Former Cabinet Minister Dimitri Dubulet proposed a solution to the problem of businesses and citizens visiting government agencies during quarantine. According to the entrepreneur, Ukrainians’ interactions with the authorities should be transferred to the iGov public service portal.
Recall that we wrote earlier that about 50% of small businesses in Kiev will be closed due to quarantine.
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