11/09/2020
- Dear readers,
Please note that from September on, we are moving to monthly COVID Alerts. You will receive the next digest from us at the beginning of October.
Armenia
- Armenian banks have provided loans worth 80 billion AMD (around $165 million) as part of government-designed assistance programmes to help offset the consequences of the Covid-19 pandemic. As of August 12, 19.9 billion AMD (more than $40 million) were transferred through banks within the framework of state economic measures to fight coronavirus. Read more
- Economic activity index for Armenia has dropped by 5.7% from January to July, with a drastic decline being observed in trade and development sector. Activity in the services sector dropped by 9.3% over the period, trade turnover – by 11.3%. Read more
- The Central Bank of Armenia is deliberately moving towards a low inflation rate. Regardless of the critics from the business sector, the CB, according to the Chairmen Martin Galstyan, acts in favour of citizens. Read more
Azerbaijan
- Cafes, restaurants, teahouses and public catering facilities in Azerbaijan can receive customers indoors from September 8, according to the decision of the Operational Headquarters under the Cabinet of Ministers. Working hours were extended till 00:00. Read more
- Export promotion payments worth more than 6 million AZN($3.5 million) were allocated to Azerbaijani entrepreneurs during 8 months of this year, according to AZPROMO organization. One of the goals is to support businesses amid pandemic. In general, these entrepreneurs exported goods worth $111 million. Read more
Belarus
- Some businesses are closing or relocating due to the lack of state support during the pandemic and inability to switch to online sales because of Internet disruptions. Read more
- The business confidence index in the second quarter of 2020 dropped to a historical record low – from minus 2 to minus 9. 70% of trade enterprises have seen a decrease in profitability. At the same time, 47% of respondents cited COVID-19 among the constraining factors of trade development. Read more
Georgia
- The average number of employees in business sector decreased by 8.1% in Q2 of 2020, the National Statistics Office reports. 41.4% of the total number of employees come from large businesses, 22.5% from medium-sized businesses, and the remaining 36.1% from small businesses. 26.8% of employees in the business sector work in the wholesale and retail trade. It is followed by the manufacturing industry, in which 13.1% of employees are employed. https://bit.ly/2DzFnZq Read more
- The Georgian government will continue subsidizing pre-existing bank loans for companies in the hotel industry over the next six months to stand by the sector mostly affected by the pandemic and support them to keep jobs. Under the programme, Enterprise Georgia is co-financing the servicing of loans of family-owned, small and medium-size hotels from commercial banks. Hotels with 4-50 rooms can receive co-financing of no more than 80% of the interest rate on loans denominated in the national currency, no more than 70% in the case of the loans denominated in foreign currency. The maximum amount of loans is 1,000,000 GEL ($300,000). Read more
- The state has already subsidised about 90 million GEL (about $30m) worth of mortgages since the introduction of its anti-crisis programme back in late May, President of the Banking Association of Georgia Alexandre Dzneladze reveals. As part of the programme, 1,000 mortgage loans have been subsidized by 4% of the interest rate by the state with a maturity of up to 5 years. The budget of the programme is 70 million GEL ($23 million). Read more
The Republic of Moldova
- According to the National Bureau of Statistics, higher salaries were registered during the pandemic. The average gross monthly nominal wages were 7,849 MDL (473 USD), which is 7.5% higher than the same period last year. The highest monthly salaries were registered in: information and communications, financial and insurance activities, production and supply of electricity, heat, gas, hot water, and air. Read more
- The new loan security tool for companies affected by the COVID-19 crisis has been launched by the Ministry of Economy. The financial instrument provides a collateral with preferential conditions for SMEs that can be used to contract loans for both working capital and investments. Read more
- The Republic of Moldova will obtain a loan worth 70 million EUR to combat the effects of the COVID-19 pandemic. The Parliamentary Committee for Economy, Budget and Finance submitted the framework loan agreement between the Republic of Moldova and the Council of Europe Development Bank for ratification before the Parliament. Read more
Ukraine
- Roughly 20% of funds have been used from the special Stabilization Fund to fight the outcomes of COVID, according to the President. Most of the funds were used for wages compensation, medical support, and infrastructure projects. Read more
- 10 days of free-of-charge promotion for niche and small businesses in the book publishing industry are provided by Yakaboo, one of the leading Ukrainian bookselling platforms. The online platform will support such publishers between September 16 and 26 in the light of restriction of mass events in Ukraine, including book publishing exhibitions which has been the main promo channel for SMEs in the industry. Read more
EU4Business Updates
- From Brand to Export: Armenian Companies Journey with EU4Business Initiative
Eastern Partnership: Ready to Trade, an EU4Business initiative supports Armenia-based companies develop internationally competitive branding identities. Read more - Developing Food Safety Enforcement in Armenia with European Union’s EU4Business Initiative
With the support of the EU4Business Initiative, 10 Armenian companies will be provided with food safety system enforcement plans, while five of those with greater export potential will be trained for certification. Read more - Bolnisi establishes new platform for efficient business with support of EU Initiative
Residents of Bolnisi Municipality in Georgia’s Kvemo Kartli Region are improving their livelihoods after the municipal authorities provided them with practical tools and know-how to operate their businesses more efficiently. The corresponding project is financed by the European Union within the framework of the Mayors for Economic Growth (M4EG) Initiative. Read more