Page 36 - bne Magazine Apri20

36 I Cover story bne April 2020
PUBLIC HEALTH MEASURES
• The state of emergency was declared on March 12 for 30 days. All mass events expecting attendance of more than 100 people were prohibited on March 10, followed by shutdown of primary schools, secondary schools and universities and health-care facilities for the public. On March 16 citizens of the Czech Republic and foreigners living in the country were banned from leaving the country. A similar ban has applied to foreigners who would wish to come to the Czech Republic but do
not have their permanent or long-term residence in
the country. Since March 14, the Government closed restaurants and all shops, excluding shops selling food, hygiene products and druggist goods, pharmacies.
• From March 16, a nationwide quarantine was imposed, free movement of persons in the country has been prohibited, unless visiting a doctor, grocery shop or family. On March 19, the Government prohibited people from being present in any place outside of their home without protective masks. On March 24, the Ministry of Health extended the ban on free movement until April 1. It also prohibited gatherings of more than two people.
ECONOMIC MEASURES
• On March 17, Czech National Bank reduced the two- week repo rate by 50 basis points to 1.75 %, the Lombard rate to 2.75 % and the discount rate to 0.75 %.
• The Government approved extension of the deadline for the filing of tax returns until 1 July (standard deadline: 31 March) and remission of any fines stemming from the late submission of tax declarations or reports.
• The state will provide CZK100bn in direct support and CZK900bn in indirect in the form of guarantees through programs COVID I and COVID II.
• The Government adopted Liberation packages: no fines to be imposed for late submission of personal and corporate income tax return, for late payment of a tax claim and for late submission of control tax reports, for late submission of real estate property tax return.
• The Ministry of Finance introduced loss carry back and suspension of the obligation to electronically record sales for entities in all phases of EET (during state of emergency and following three months).
• The Government adopted a program to support companies called “Antivirus”, within which the state will compensate remuneration of employees, if the employers do not lay them off.
• The Czech government has approved an increase in the budget deficit from CZK40bn (€1.4bn) to CZK200bn (€7.2bn) as an amendment to the State Budget Act.
ECONOMIC FORECASTS (where available)
• According to the latest forecast, Czech GDP in a month- long state of emergency might record losses of 0.8
to 1.1%, up to CZK66bn (€2.5bn). The country's GDP
for 2020 was estimated to amount to about CZK6bn (€230mn) at current prices.
• The Czech economy is heading into recession. Being the EU country with the 4th lowest total debt-to-GDP at around 32% of GDP, it could cope with Government emergency measures, however, foreign demand could become a bottleneck for a swift recovery. The headline CPI is expected to decrease to 2.5% in 2020.
Slovakia
VIRUS UPDATE
• Number of cases as of March 25: 216
• Number of deaths as of March 25: 0
• Comment: Slovakia was the last country in CEE to
confirm its first case of coronavirus on March 9. The coronavirus outbreak became an immediate policy challenge of the new Slovak government appointed
on March 21. The new Cabinet has approved 40 anti- coronavirus measures, which were due to be presented on March 31, 40% of them aimed at protecting the elderly.
• On March 24, the Government decided to draw a law allowing the Public Health Authority to collect mobile phone localisation data from telecommunications
operators to track people with the new coronavirus (COVID-19).
PUBLIC HEALTH MEASURES
• The state of emergency in the whole territory of the Slovak Republic was declared on March 12. Borders and all three international airports were closed. Health and police measures have been imposed at the borders of the Slovak Republic with Hungary, Austria, and the Czech Republic. International and domestic train and bus transport were limited, except for imports and supplies. Local public transport is running on a reduced timetable.
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