Montenegrin Government adopted economic measures due to Covid-19 pandemic
Montenegrin Government adopted economic measures due to
Montenegrin Government announced enacting of set of economic measures aiming at addressing expected negative impact of Covid – 19 on both companies and citizens during session held on Thursday 19 March 2020.
Government is yet to share details on expected start of application of economic measures. Most of the announced measures are yet to be published in the Montenegrin Official Gazette. We highlight the following most significant measures:
- Deferral of repayment of loans to commercial banks, micro-credit institutions and Investment Development Fund (IFD) up to 90 days (90 day moratorium) granted on the basis of borrower’s request. This measure applies to both corporate and individual borrowers and relates to payment of loan principal, interest and fees as well as late payment interest. This measure was published in the Montenegrin Official Gazette as of 19 March 2020 and starts to apply as of 20 March 2020;
- Deferral of payment of personal income tax and mandatory social security contributions and other tax liabilities in line with the Law on Rescheduling of Tax Receivables. No details are currently available. This measure is yet to be published in the Montenegrin Official Gazette;
- 90 days deferral in payment of rental fees for state owned properties. No details currently available. This measure is yet to be published in the Montenegrin Official Gazette;
- Ban on initiation of public procurement processes except those needed for operating of the healthcare system. No details currently available. This measure is yet to be published in the Montenegrin Official Gazette;
- Advance payments for works relating to existing capital projects are to be secured by bank guaranties for the full amount of advance payment. Measure is aimed at ensuring liquidity needed for continuity of planned works. No details currently available. This measure is yet to be published in the Montenegrin Official Gazette.
In addition to these measures, Montenegrin Tax authorities published on its website on March 17, 2020, the decision to extend the deadline for filling of statutory financial statements and corporate income tax returns from 31 March 2020 to April 15, 2020. It is important to note that the decision to extend the statutory deadline relates solely to the filing of financial statements and corporate tax returns, but not to the payment of corporate income tax liability.
At this point Montenegro did not introduce state of emergency due to Covid-19 outbreak.
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