Job-retention measures will likely be extended after March 1, Labour Minister said on Thursday.

“At the moment, as always, we are standing side by side with employers and workers. As a responsible government, we are protecting jobs and business activity and will continue to do so,” Aladrovic told the press, adding that in March employers whose business was at risk could expect assistance. “We must balance epidemiological and economic measures the whole time,” he noted.

According to him, some businesses, notably in hospitality, will most likely not be able to work at full capacity. “Considering that and the potential fall in revenue, we will certainly be at employers’ disposal and we will certainly protect the labour market, and from 1 March we can expect additional job-retention measures.”

Finance minister: Job-retention measures will most probably continue

Responding to questions from the press, Finance Minister Zdravko Maric said the government “won’t ignore entrepreneurs’ appeals.” “Regarding the extension of the measures, we will talk. They will most probably continue.”

Asked if the government had begun talks with banks on loans, given that many entrepreneurs are complaining that they cannot get a loan if their revenues have dropped more than 60%, Maric said the government had done its utmost to facilitate lending conditions.

“We have sufficient mechanisms and instruments to activate bank lending as much as possible,” he said, adding that banks had the right to ask for state guarantees and demand that the government “always stand behind everything.” He added, however, that the government had limits and a macroeconomic policy to pursue.

Asked about the state budget, Maric said the drop in tax revenues, in comparison with the time before COVID, was as expected.

“Tax revenues are four to five percent lower than at the same time last year. We are pleased that the drop in contributions is lower, which means the trend on the labour market and in employment has been retained.”

Asked if the government had considered allocating funds raised after the 29 December earthquake as reported by the Jutarnji List daily, Maric said the only relevant thing was what the government eventually adopted.

According to the daily, the government plans to spend only 40% of the funds raised on the reconstruction of houses damaged in the tremor. However, at today’s meeting, the cabinet decided to spend the entire sum of HRK 101.5 million on that.