Page 37 - bne Magazine Apri20

bne April 2020 Cover story I 37
All schools and educational establishments were shut down, as well as bars, leisure facilities and premises, social and cultural establishments. Visits of the hospital patients are prohibited. So is organization of sporting, cultural, social and other mass events. No end date has been specified for most of the measures.
ECONOMIC MEASURES
• The government introduced a contribution for employers for keeping a work position, financed through the European Social Fund or from the state budget. The government promised the financial injections for particular sectors. The deadline for filing tax return reports is to be postponed for 3 months.
ECONOMIC FORECASTS
• The Slovak economy is expected to decline by between 1.4% and 9.4% in 2020. However, the central bank does not expect lasting and deep effects like those caused by the financial crisis in 2009. Slovakia's economy could return to the pre-crisis level as early as next year, depending on possible further measures introduced by the Government.
• A drop in Slovak economy will lead to the losses of 75,000 to 130,000 jobs, which will increase the unemployment rate according to international methodology to 7.5% to 10%.
• Four key car producers in Slovakia, Volkswagen, Kia Motors, Jaguar Land Rover and PSA Groupe announced to suspend their production in March, which could, according to business associations, lead to a drop in GDP by 0.5-1%.
CENTRAL ASIA
Kazakhstan VIRUS UPDATE
• Number of cases as of March 25: 109
• Number of deaths as of March 20: 1
• Comment: so far, most of the infections are limited to
Almaty and Nur-Sultan, but cases have been popping up in other cities such as Karaganda and Shymkent as well. Despite its proximity to China, Kazakhstan, along with other Central Asian nations, appears to have had
a relatively mild exposure to the virus (if figures by local authorities are not downplayed).
PUBLIC HEALTH MEASURES
• A state of emergency was declared in the country barring all travel in and out of the country with the exception of returning citizens and diplomatic delegations approved by the Kazakh government. The largest Kazakh city, Almaty, and the capital, Nur-Sultan, are under a quarantine lockdown. Only food and medical products are allowed to be transported into the two cities. Schools and public spaces like restaurants are closed.
• All companies ordered to send employees to work remotely where applicable.
• All citizens who test positive for the coronavirus are being placed in quarantine either at home or at medical facilities, depending on the severity of their symptoms.
• All returning citizens placed under a two-week quarantine.
• Social distancing is highly encouraged by authorities. Citizens have been urged to stay home after first death on March 25.
• Ban on all gatherings of more than three people in public spaces in Almaty and Nur-Sultan. Movement of unaccompanied minors in public is banned as well.
ECONOMIC MEASURES
• $10bn stimulus package announced, including $740mn towards measures to boost employment
• Additional $1.5bn announced for lending to businesses for working capital.
• Tax payments delayed for small businesses (likely until the end of the state of emergency).
• People who lost their source of income due to the state of emergency and quarantines will receive KZT42,000 (€85.07) per month.
• Standstill on bank loan repayments by individuals and small and medium sized enterprises imposed.
• Companies ordered to sell-off forex revenue to support local currency.
• Exports of wheat flour, buckwheat, sugar, sunflower oil, and some vegetables suspended at least until April 15.
• Kazakhstan will temporarily soften prudential regulations applying to banks between April 1 and October 1.
• Under consideration: ban on imports of petrol from Russia along with removing bans on exports of trucks
www.bne.eu