14/08/2020
Armenia
- The coronavirus-related state of emergency in Armenia has been extended for another month keeping many restrictions for the business until September 9. Read more
- IFC, a World Bank Group member, provides a loan of $15 million to Inecobank to boost lending to Armenia’s micro, small and medium enterprises in resisting Covid-19 challenges. The financing will help MSMEs sustain operations, recover faster and create jobs. Read more
- In the first half of the year, the service sector of Armenia contracted by 6.4% per annum to 861.7 billion AMD (about $1.8 billion), according to the Statistical Committee of the RA. Read more
- In the first half of 2020, trade sector turnover in Armenia fell by 11.1% compared with growth of 8.9% a year before. According to the RA Statistical Committee, in June alone, the trade sector provided revenue of 235.7 billion drams ($489.8 million), with a monthly growth of 14.3%. Read more
- IT is one of the few spheres in Armenia that despite Covid-19 pandemic and its economic impact registered solid growth in June 2020 of 45%. IT services registered growth of 23.9% for the first half of 2020 YoY. Read more
Azerbaijan
- The Azerbaijani government is preparing a number of benefits for businesses to tackle the coronavirus pandemic, Prime Minister Ali Asadov said. He added that some business procedures will be eased and relaxed. Goverment is preparing rules and instructions, which will be controlled by selected bodies. Read more
- The Azerbaijani parliament approved the allocation of an additional 100 million AZN ($58.7 million) to support local business. This was detailed in the draft law on the introduction of changes to the budget, approved by Parliament. These funds will be allocated to help business counter negative consequences of coronavirus pandemic. Read more
- The Azerbaijani government is considering the possibility of partial resumption of the activities of cafes, restaurants and catering facilities in Baku and number of other cities and districts from August 17, Assistant to the President Shahmar Movsumov said at a briefing. According to him, this issue is under discussion. He added that all depends on epidemiological situation in the country. Read more
Belarus
- Due to the political unrest and interrupted access to internet, we are unable to bring Covid-related news in Belarus this week. We will continue to provide news when the situation stabilises.
Georgia
- A study of TBC Capital reports that 47,000 more people were paid their salaries in June, compared to the previous month. Positive dynamics were observed in many industries, except for education, professional activities, entertainment, arts and energy. Read more
- The Georgian Government revealed an additional anti-crisis plan to tackle economic and social challenges amid the coronavirus fallout. The third stage of the anti-crisis measures worth GEL 410 million (about $132 million) entails a social assistance package for individuals, including helping children and students, as well as covering utility fees for the households. Read more
- To compensate reduced income experienced by citizens or the loss of jobs in the wake of coronavirus pandemic, the government of Georgia has extended the utility support programme for the four months of winter. Under the third stage of the Anti-Crisis Plan, the government will compensate up to 200 kWh of electricity and up to 200 m3 of gas. Read more
- Families will receive one-time assistance of 200 GEL (about $64.83) per child from the state. This one time social assistance for children is part of the third phase of the government's anti-crisis plan to support the citizens deal with Covid-19 economic crisis and help them prepare for the upcoming academic year. Read more
- Self-employed people who do not have documentation pertaining to their work status will still receive 300 GEL assistance (about $97). 80,000 citizens will benefit from the self-employed assistance programme. So far, 250,000 self-employed people have registered to receive assistance, while 170,000 have already received it. Read more
- About 2,700 foreigners register to travel to and work remotely from Georgia. The project initiated by the Ministry of Economy invites freelancers and self-employed foreigners to run their businesses from the country remotely and enjoy its corona-free, safe environment. Read more
The Republic of Moldova
- The Covid-19 crisis has an impact on the entire value chain of the tourism industry. An estimate shows that sales in tourism declined by 65-85%, and losses are estimated at about $350 million. Read more
- While guesthouses outside Chisinau are full, hotels located in the city are basically deserted. Due to the pandemic, the Republic of Moldova has closed its borders for foreign tourists and has turned into an isolated country. This has severely affected the hotel industry. Read more
- Resident enterprises and non-profit organizations in the Republic of Moldova, which have established temporary unemployment due to the epidemiological situation are entitled to apply for subsidies from the state budget. To date, 305 economic agents have benefited from the Wage Subsidy Programme. Read more
- The Alliance of Small and Medium Enterprises from Moldova has launched an initiative that aims to show the situation of SMEs in the country. This initiative involves creating an interactive map that will include data about the pandemic effects on the business environment. The data will be processed and transmitted to the Government of the Republic of Moldova in the form of recommendations. Read more
Ukraine
- The Ukrainian government managed to safe 360,000 jobs during the quarantine period due to the financial aid of UAH 1.8 billion (EUR 55 million), according to the Prime Minister Denys Shmygal. Last week there were 6,000 fewer unemployed people with a total of 220,000 who found jobs through the State Employment Service. Read more
- European Business Association in Ukraine advocates for fairer application of fines to enterprises (from EUR 104 to 157), where visitors were seen not wearing a mask, and for individuals (from EUR 5 to 7), which has led to unfair competition. Read more
- In the first half of the year, GDP fell by 6.5%, and in the second quarter by 11% (14% was expected), states the Ministry of Economy in its review of economic activity for the first half of the year. Read more
- Sales of new commercial vehicles, a key indicator of business activity, were up 11% in July yoy. The July figure of 1,163 was 53% higher than June, reports Ukravtoprom. Read more
EU4Business Updates
- Improved SME statistics for evidence-based SME support in the Eastern Partnership
With support delivered by the OECD under the EU4Business initiative, Armenia and Ukraine have improved their statistical systems and started to produce internationally comparable indicators on the structure and performance of the SME sector. Read more - LisLis story: how the Ukrainian toy producer entered the European markets
Back in 2018, little did Oleksandr Shestakovych, a 3D designer from Lviv, know that in only 2 years he would be a worldwide exporter of wooden toys thanks to a seria of trainings by the Business Information Support Center (BiSC) in Lviv, implemented by EBRD as part of EU4Business Initiative of the European Union. Read more - EU helps Georgia, Moldova and Ukraine with macro-financial assistance to limit economic fallout of pandemic
On 11 August, the European Commission signed memoranda of understanding (MoU) on macro-financial assistance (MFA) programmes with eight partners in the EU Neighbourhood. The agreements are part of the €3 billion MFA package for ten enlargement and neighbourhood partners, aimed to help them limit the economic fallout of the coronavirus pandemic. Read more - EU-supported facility in Azerbaijan produces masks during COVID-19 pandemic
With EU funds, the United Nations Development Programme (UNDP) and the State Agency on Vocational Education of Azerbaijan have procured technical equipment to support the production of medical face masks in Azerbaijan during the coronavirus pandemic. Read more