At a government session today, the only item on the agenda was the proposal of fiscal policy measures in response to the negative economic effects of the coronavirus epidemic.

Prime Minister Dusko Markovic presented fiscal measures:

• The first measure is to delay the repayment of loans with all banks of microcredit institutions and the Investment and Development Fund for 90 days.
• Payments of taxes and contributions on earnings and liabilities under the rescheduling law are deferred
• Creation of a new IRF credit line designed to improve entrepreneurs' liquidity to a maximum of EUR 3 million per user.
• Provision of one-time assistance to the pensioners with the lowest pension and beneficiaries of material security in the amount of 50 euros each. One million euros committed.
• Postponing the payment of 90-day state-owned real estate leases.
• Suspension of variable pay and all budgetary fees for work in committees, boards of directors ... Recommendation to local governments to do the same.
• Members of the Government will pay half of their salary at one time into the account of the National Infectious Diseases Coordination Body
• Limiting and controlling budget spending while banning all public procurement except those necessary for the health system to function.
• Advance payment to providers and contractors on started capital projects with the provision of a bank guarantee in the amount of advances. Started capital projects will not be stopped.
• All measures related to the liquidity of the economy also apply to the companies that are the founders of the Montenegrin media. We have sent a recommendation to the Agency for Electronic Media, ie the Ministry of Culture, to find a way to exempt the media from paying the fee for a period of 90 days, and to enable the print media to have competitive funds that will be thematically focused on social activities.

The government has enacted a set of economic measures that should help citizens and the economy recover from the effects of the coronavirus epidemic.

Prime Minister Dusko Markovic said that the goal and focus of these measures is a man, that is, a citizen, his family and "our common house".

"I am sure that we will unite and stand in solidarity to defend these values," Markovic said at a news conference presenting a set of economic measures.

A set of economic measures to remedy the negative effects of the coronavirus epidemic, among other things, envisages deferred repayment of the loan for three months, as well as payment of taxes and contributions on earnings and liabilities under the Rescheduling Law.

"The first measure is to delay the repayment of loans to all banks, micro-credit institutions and the Investment Development Fund (IRF) for 90 days. It is necessary for our banking sector to provide the highest level of administrative efficiency, so that everyone who wants to benefit without any difficulty that right, "Markovic said at a news conference.

He also announced the creation of a new IRF line of credit aimed at improving the company's liquidity up to a maximum of EUR 3 million per user, and envisages assistance of EUR 1 million for the most vulnerable, which includes one-time financial assistance for pensioners with the lowest pension and beneficiaries of material security. from 50 euros each.

Markovic said the payment of rent for state-owned real estate was delayed for 90 days.

"Started capital projects will not be stopped," Markovic said.

He added that the members of the Government would pay half of their salary at one time into the account of the National Coordinating Body for Infectious Diseases, and that payments of variable part of the salary and all budgetary remuneration for work in commissions and boards would be suspended.

Markovic said the Government would continue to adopt all measures in a timely manner.

"The moment is when everyone - the state, the economy and the citizens have to share the burden of danger, because that is the only way we can survive," Markovic said.

Answering a reporter's question about the possible introduction of new economic measures, he said that everyone was aware that circumstances change from hour to hour, not from day to day.

"The government works around the clock, analyzes the situation on the ground, measures of our economic policies and emergency measures can be changed tomorrow. There are no time limits for our decisions," Markovic said.

Answering the question of how the state will deal with those who use the opportunity or raise prices, he said that he believed that everyone showed a high level of individual and social responsibility in relation to this situation.

"There were individual cases at the very beginning, a disagreement that could be understood as a misunderstanding of the situation we are in. Today, there are fewer such situations," Markovic said.

He recalled that there have been over 300 inspections in the last few days and said that anyone who violates the law will be sanctioned.

"Although the situation is extraordinary, the institutions are functioning, the economy is behaving responsibly, as are individuals and citizens. There is no need to embarrass anyone but to be responsible at the height of the task in these difficult circumstances," Markovic said.

Asked if pensions and wages would be paid regularly, as well as whether there would be layoffs and pay cuts to workers, he replied that his message was that there should not and should not be layoffs.

"That should be the last measure," Markovic said.

He added that the Government proposed a set of economic measures primarily as social support and stabilization measures, which should ensure the sustainability of public finances.

Speaking about the layoffs, Markovic said that this is a real danger and a scenario in some companies, because economic activity is stopped.

"Employers must first and foremost concentrate on their businesses, maintaining their businesses and keeping an eye on the standard of employees," Markovic added.

The Governor of the Central Bank (CBM), Radoje Zugic, said that the Council of those monetary institutions had taken measures to reduce the negative impact of the coronavus pandemic on the economy and health of citizens.

"A moratorium on payment of all liabilities of citizens, entrepreneurs and all loan beneficiaries has been adopted, which relates to interest, principal and debts owed to banks," said Zugic.

He said banks had done a lot for their clients and freed them from paying certain commissions.

"This is an opportunity to inform citizens that the banking system of Montenegro has recovered without systemic vulnerabilities with high capitalization and liquidity. My message to citizens is that they do not worry about their deposits. Banks are stable and highly liquid," said Zugic.

He said the CBCG provided additional funding, with several hundred million euros in funding provided.

"There is no room to panic, no fear. The banks are stable and sound, "said Zugic, adding that flexible restructuring of the loans, which would then be treated as newly approved, would be enabled.

The Minister of Finance, Darko Radunovic, when asked if tax liabilities should be reported within the next 90 days, replied that there should be exemptions as well.

"So, we need to have regular records and keep in mind what the tax liabilities are," Radunovic said.

He said the government is also considering a budget rebalance, but now is not the time to do so.

Asked how much money the state is currently willing to invest in the economy in order to preserve jobs and liquidity of the company and whether it can provide certain subsidies for citizens and the economy, Radunovic replied that Montenegro is not a state that has the ability to provide subsidies .

"We do not have the ability to broadcast money, so with these reliefs, exemptions and delays, we will create the environment and space for the economy to function. Over time, we will see what we will make and what decisions we will make further," Radunovic said.

He added that the Government had not considered changing the rate of value added tax (VAT).

"These systemic changes are not right now," Radunovic concluded.