Since the coronavirus pandemic started in March last year Croatian government has spent 1.8 billion kuna (€238 million) to cover wages of furloughed workers in the hospitality industry, Vecernji List daily calculated on Friday days after owners of bars and restaurants staged a protest rally in Zagreb demanding more subsidies and the reopening of their businesses.
It is estimated that these businesses are losing 650 million kuna (€86 million) every month on account of lost revenue, and the government’s assistance offsets the portion of that loss in the amount of 130 million kuna (€17 million) or 20 percent, in addition to other subsidies which cover some of their fixed costs.
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The bulk of funding designed to help businesses survive through coronavirus restrictions involve grants used to cover salaries and wages. These grants are 4,000 kuna per employee, per month. Other forms of help included local and central government foregoing some dues for businesses that have been forced to temporarily close or have had a marked downturn in their revenues.
Financial assistance in some of the most developed countries has reached 40 percent of their annual GDP, Vecernji List said, and most of those measures are in the form of loans and credit lines under favorable terms and conditions, with only a small portion in the form of direct grants.
In Germany, direct assistance to businesses affected by the coronavirus crisis accounted for 10 percent of the country’s annual budget in 2020. In Croatia, grants in the form of direct aid amounted to 5 percent of GDP in 2020. Non-direct assistance in the form of credit lines and some other models of compensation was ‘considerably higher.’
(€1= 7.56 kuna)
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