24/04/2020
Armenia
- 167 loan applications from SMEs worth 1.6 billion AMD (about US$ 3.3 million) have been approved as of April 16, 2020. Under the effective job support measure for entities with 2-50 employees, another 1.2 billion AMD (about US$ 2.5 million) was disbursed as one-time grants.
Read More - The Asian Development Bank predicts 2.2% economic growth for Armenia, the World Bank keeps it lower – 1.7%. Read More
- Armenian Restaurant Union declares that the state support will increase loan burden for their business. Vahe Gevorgyan, the Executive Director of the Union says there are around 2,500 companies in public catering and that state support programmes may not be needed as most of the restaurants will be closed in the coming months. Read More
Azerbaijan
- Over the first 3 months of 2020, Azerbaijan's GDP has grown by 1.1%. The nominal GDP for January-March amounted to 18.3 billion AZN ($10.7 billion) with inflation rate of 3%. Growth in non-oil sector amounted to 3.5%, decline in oil and gas sector – 2.1%. Read More
- A number of amendments to the Tax Code are prepared in Azerbaijan to minimize negative effects of COVID-19 on business. These include provision of temporary tax benefits and tax holidays until January 1, 2021, to taxpayers directly affected by the pandemic: in particular, eliminating of property and land taxes, 75% reduction in profit tax, 50% reduction in simplified tax for micro-businesses. Read More
- 46.9 million AZN ($27.65 million) was allocated to 34,630 entrepreneurs affected by the coronavirus pandemic in Azerbaijan. Read More
- Agency for Development of Small and Medium-Sized Enterprises started to hold online workshops for entrepreneurs who suffered from coronavirus pandemic. The aim is to fully inform businesses about support measures, undertaken by government and provide them with other information needed. Read More
Belarus
- 14% of Belarusian SMEs said that they will not survive longer than two weeks without support. Successful businesses also mention problems: drop in domestic demand (76.4%), retention of rental fees and taxes (47.3%), instability of the Belarusian ruble and falling demand on foreign markets (38.3%).
Read More - The main measures taken by businesses include optimization of expenses (86% of the survey participants), reduced hours and salary cut (45%). 40% of respondents are looking for new business formats, 23% opt for dismissals, and 18% suspend business activities. Read More
- Revenues in second-hand stores fell by 50-60%. There is no import of second hand goods due to closed borders, the outlets started to dismiss employees or close.
Read More - Businesses have to pay rent for another three months even though outlets are closed now. Rental fees are often tied to a rising euro or dollar. Read More
- Example of a successful business in a pandemic. An individual entrepreneur created a website within a week and began selling thermal imagers earlier than the official distributor. He earned as much per week as he usually earns per quarter. Read More
- A Belarusian provider launched a free service for remote work peregovorka.by, which is similar to Zoom and Skype, but there is no need to download a special application. Read More
Georgia
- Georgia's economy will decline by 3.99% this year, IMF reports. Inflation will decrease to 4.6%, compared to 2019, due to the reduction in domestic consumption in the country. A 10% increase in the current account deficit is predicted. The country's economic growth rate will improve and reach 3% in 2021. Read More
- Around 30% of hired employees will be significantly impacted by the COVID-19 crisis, while 22% will suffer medium impact due to; 15% of self-employed will be highly affected, where 84% of self-employed individuals will feel a medium impact, policy note by ISET says. Direct cash transfers to vulnerable groups of individuals through social assistance is recommended for the government. Read More
- World Bank will help small and medium-sized enterprises in Georgia to restore jobs, restart their businesses, and deal with the 4% decline of the country’s economy. Read More
- Georgia will allocate $1.5 billion to support private sector and SMEs, through commercial banks, from $3 billion preferential credits received from international financial institutions in response to the crisis. Public sector (the government and the National Bank) will be supported with $1.5 billion. Read More
- Anti-crisis plan of Georgia includes deferment of income and property taxes, benefiting 4,500 companies as of today; subsidizing interest on small hotels; food price insurance by the state; subsidy for utility bills for about 1.5 million families. In addition to the social package, the further plan envisages allocating significant financial resources to the private sector and providing assistance to keep the jobs.
Read More - E-commerce platform extra.ge offers a new service ‘save’, supporting businesses to operate and sell the products they are not able to trade now due to COVID-19 restrictions, and offering the customers get products with current limited supply in advance, with special discounts, and receive them as soon as the delivery service restrictions are over.
Read More - Create Your Own Online Store – a special opportunity for businesses to transform digitally, exploit online sales channel and deliver the products throughout Georgia was developed by TBC Bank and VISA. The offer includes a platform through which businesses can easily create a website, free photographer service to better illustrate products, TBC's online payment system and delivery service.
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The Republic of Moldova
- 88% of companies are negatively affected by the drop in demand for products and services, according to the American Chamber of Commerce study conducted among 315 companies. Other negative factors include restrictions imposed during the state of emergency (74%) and lack of raw materials and / or supply chain disturbances (34%). Read More
- The government has adopted new measures to support the population and the business environment in times of crisis. The measures imply extension of deadlines for declaration and payment of taxes, supporting employees through wage subsidy, granting unemployment benefits, and increasing financial support for disadvantaged families. Read More
- Several companies within the Free Economic Zones (FEZ) of the Republic of Moldova gradually reopen their activities. The main reasons for the partial cessation of the activity in the FEZs were the lack of the raw materials, the lack of orders from the international customers, e in the automotive sector, sharp decrease in demand for finished products on the markets, protection measures, as well as the inability to pay. Read More
- Up to 100 million lei ($5.6 million) will be invested in supporting entrepreneurs affected by the pandemic. Women entrepreneurs will receive grants starting from 165 thousand lei ($ 9.2 thousand) up to 1.6 million lei ($89 thousand) for the purchase of technological equipment, software consulting and development solutions. Read More
Ukraine
- Due to the quarantine, the number of unemployed Ukrainians has roughly doubled in one month, to 2.5-2.8 million people, calculates the Ukrainian Chamber of Commerce and Industry. The unemployment rate today is 13.7-15.4% – this is the highest rate in the last 15 years. 26% of companies say they plan to cut staff. To get some relief, quarantined businesses should pay only utilities – not rent – during the quarantine. Read More
- The government is making $1.3 billion available to small businesses in its ‘5-7-9%’ loan program. Designed to preserve jobs, the maximum loan size is $110,000 and all loans are to be interest free until next March 31. Read More
- About 30% of retail stores in Ukraine may not reopen after quarantine, Colliers International predicts in a new report. A significant decrease in rental rates is expected after quarantine for at least six months to preserve tenant business. Read More
- UAH 105 billion ($3.8 million), over 4 thousand kilometres of roads and new jobs for Ukrainians are planned by the Government as a Great Construction programme, according to President Volodymyr Zelensky.
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Ukraine
Rapid coronavirus response in Ukraine: from blouses to face masks
Ukrainian textile producer of fashionable dresses, blouses and skirts swiftly switches manufacturing to face masks to satisfy the demand following EBRD and EU support. Read More
EBRD and EU4Business offer free learning opportunities for business
Since March 2020, entrepreneurs can learn at online-events of the Business Information Support Centers (BISCs) and Merezha online platform. Read More
Armenia
EBRD-EU4Business clients support Armenia in fighting Covid-19
“Art Lunch”, serving nutritious food to more than 1500 quarantined citizens and medical staff, mobilized local producers and volunteers to provide free food to more than 2000 elderly people.
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Helping SMEs go digital in Armenia
A series of training “Developing business through digitalization” aims at supporting SMEs in their efforts of addressing the COVID-19 challenges.
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The Republic of Moldova
Moldovan toymaker shifts production to help health workers fight COVID-19
A Moldovan toy company has shifted its production to help frontline health workers fight the coronavirus outbreak. The company has been making plastic protective screens and intubation boxes for intensive care units. Read More