Armenia
- According to the World Bank’s latest report, the economic and social measures to mitigate the pandemic cost Armenia’s budget around 2.3% of GDP. The report states that revenues fell by 6% yoy resulting in the deficit of around 1.7% of projected annual GDP in the year-to-July. Read more
- The fall in Armenia’s GDP in the second quarter of 2020 was 13.7%. According to the Central Bank report, the impact on the GDP potential is partially assessed as temporary due to the Covid-19 pandemic. Read more
- Armenian central bank leaves refinancing rate unchanged at 4.25%. Last time it was lowered on September 15, by 0.25%. Read more
Azerbaijan
- Business support measures in Azerbaijan due to the Covid-19 pandemic may be extended until the end of 2020. At the beginning of October, the Central Bank of Azerbaijan received applications for restructuring loans in the amount of 1.4 billion AZN ($0.82 billion) within support measures, and most of these applications have already been approved. More than 20,000 applications regarding business loans were received (88% approved). Read more
- Number of business entities increased in Azerbaijan despite the pandemic. The number of legal entities registered in Azerbaijan as of October 1, 2020 amounted to 153,157, which is 4.7% more than at the end of 2019, according to the State Statistics Committee. Read more
- Agricultural production slightly increased in the midst of pandemic. The volume of agricultural production in January-September 2020 amounted to 6.84 billion AZN ($4.03 billion), which is 1.5% higher than the same period in 2019. Read more
- Consumption in Azerbaijan decreased by 8% in January-September yoy amounting to 33.5 billion AZN ($19.7 billion), according to the State Statistics Committee. The cost of products sold and services rendered by business entities of the non-state sector, compared to the period from January to September 2019, decreased by 7.4% and amounted to 32.3 billion AZN ($19 billion), 49.6% of this amount was from private entrepreneurs. Read more
Belarus
- In September, 58% of entrepreneurs experienced a decrease in revenue, for 10% of them revenue dropped by more than 40%. The most vulnerable category was entrepreneurs providing temporary accommodation and catering: 100% stated that their revenue fell by at least 20%. In September, Covid-related layoffs were three times less frequent as compared to spring. The rate of unpaid leave also decreased: in May it was common practice for one third of enterprises, in September – only 5%. Read more
- According to the Ministry of Finance of Belarus, all support measures (both budgetary and sponsored by banks) exceeded one billion rubles (about $ 385 million). The lion’s share of the measures was sponsored by banks. At the same time, the biggest burden for SMEs – payments to the Social Security Fund – remained unchanged during the pandemic. Read more
- Tax benefits and preferences within the framework of the decree on economic support exceeded 34 million rubles ($13 million) and were granted to about 47,000 business entities and individual entrepreneurs. Each SME received an average of $276.56 tax incentives. Read more
Georgia
- External trade of Georgia is negatively affected by the pandemic. In January-September 2020 Georgia’s foreign trade is 14.9 % lower than the same period of 2019. The value of exports decreased by 12.1%, while imports also decreased by 15.9. Read more
- Budget revenues from VAT paid by private sector and the income tax are reduced, which indicates a decrease in the population's salaries. The factors influencing income tax reduction may be the loss of jobs due to Covid-19 pandemic and exemption of income tax for salaries up to 750 GEL (about $233) for the private sector and the partial exemption of income tax for salaries up to 1500 GEL (about $466). Read more
- About 100,000 people have lost their source of income in Georgia during the pandemic. The government has not decided on the continuation of the anti-crisis projects expiring in the end of October, enabling people who lost their jobs or were on unpaid leave receive 1,200 GEL (about $373) over the course of six months, also, offering people employed in the informal sector or self-employed individuals receive one-time assistance of 300 GEL (about $93). Read more
- Government has not decided on granting tax breaks to businesses yet. Georgian businessmen ask PM to extend benefits for businesses enjoyed in the spring amid the Covid-19 outbreak. Business companies ask to cancel income tax and VAT, which allows more working capital to remain in the business; negotiate with the banking sector to reduce the interest rate as much as possible and postpone bank liabilities for 6 months; consult with utility companies to delay the bills and offer more reasonable payment schemes; compensate the salaries of small businesses. Read more
The Republic of Moldova
- From April until October 20th, 15 companies ceased their activity. The most affected sectors were domestic trade, manufacturing, light industry, service provision sector, HoReCa industry and education sector. Read more
- The effects of Covid-19 pandemic decreased GDP by about 16-17%. Thus, budget revenues are reduced by 15%, and the budget deficit could amount to 7% of GDP. Read more
- Light industry has been severely affected by the pandemic. 75% of enterprises continue to operate with partial staff, partly being involved in the production of masks and protective medical equipment.Read more
- According to the National Bureau of Statistics, exports of goods in August 2020 were nearly $165 million. The amount is by 20% lower than the month before and also lower compared to the same period of the previous year. Read more
- Companies from the Republic of Moldova that want to sell their products on foreign markets will be backed by the “Support Programme for Small and Medium-sized Enterprises (SMEs) with high potential of their growth and internationalization”. The programme was launched by the Organization for Small and Medium Enterprises Sector Development (ODIMM), through which grants of up to 5 million MDL ($3 million) can be accessed for the implementation of international practices in order to increase productivity and competitiveness. Read more
Ukraine
- The Cabinet of Ministers allocated UAH 1.3 billion (EUR 39.1 million) from the COVID-19 Fund for fighting unemployment. In total, during the quarantine UAH 10 billion (EUR 300.8 million) for support to the unemployed was disbursed. Also, the program of additional assistance for partial unemployment was reported to demonstrate effectiveness with UAH 2.5 billion (EUR 75.2 million) disbursed and 370,000 workplaces saved. Read more
- The average wage in September has reached its maximum since the beginning of the year, The Prime Minister reported. This was due to the increase in the minimum wage to UAH 5,000 (EUR 150), as well as the resumption of business activity on the employment market after the lockdown. Read more
- The state credit line “Affordable credits 5-7-9%” became more accessible for SMEs due to the recent changes related to increasing the maximum level of annual income to the equivalent of EUR 10 million and removing the requirement for mandatory profitability of an existing business – the final decision will be made by the creditor banks. Read more
- Wage arrears in Ukraine increased by 24% to EUR 200 million. Debt is rising in all sectors of the economy due to the COVID crisis. Read more
- The quarantine in Ukraine was extended until the end of 2020. The color-code zoning remains in place with some further restrictions for business in the regions in red and orange zones: in the red and orange zone, restaurants and cafes cannot operate between 10 pm and 7 am, except for food delivery services in the orange zone. Employers are recommdened to establish work shifts, and if technically possible – work online with the preservation of wages. Read more
EU4Business Updates
- Crisis as a recipe for success: How two Ukrainians save customers up to 30% on fuel
In April 2020, during the Covid-19 quarantine, Ivan Semenyuk and Andriy Pavlikovsky leased a commercial car under the EU4Business-EBRD Credit Line the EBRD and EU joint initiative. Under this programme, they received a grant for 10% of the car cost, or approximately €1,670, on a 2-year leasing term. These conditions were a lifesaver for owners. Read more - SuomiKids keeps Belarusian babies warm
The Women in Business Support Programmeof the European Bank for Reconstruction and Development and the EU4Business initiative helped one Belarusian entrepreneur increase sales by 80% and raise her brand’s profile. Read more - Over 60 free workshops for SMEs in Belarus will be held
More than 60 free workshops will be held for the self-employed and small businesses within the framework of the project “Support to economic development at the local level in the Republic of Belarus”, which is supported by the European Union and implemented by the UNDP in partnership with the Ministry of Economy of Belarus. The goal is to minimize the negative consequences of COVID-19 and support business in the regions. Read more
