General national economic measures
*small business relief or other financial support
*interest free crisis loans
*company tax relief
*income support for employees
*income support for freelance workers
*unemployment relief for freelance workers
Four economic packages were introduced to lessen the negative impact of the crisis.
The total size of the packages was above €1 billion (around 9.0 per cent of GDP).
-Subject to certain conditions, micro, small and medium companies were able to obtain interest-free loans, with a grace period of six months and a repayment period of two years: micro-companies (up to 10 employees) were able to borrow EUR 3,000 to EUR 5,000; small companies (between 10 to 50 employees) were able to borrow EUR 10,000 to EUR 15,000; and medium companies (between 50 and 250 employees) were able to borrow from EUR 15,000 to EUR 30,000. These loans were available from the The Development Bank of North Macedonia.
-In April, May and June 2020 in the tourism, transport and hospitality, as well as for other affected sectors, employee costs were subsidised up to 50% of the average salary paid in 2019 as long as the company kept the same number of employees, didn't not pay out dividends in 2020 and didn't pay staff bonuses. Companies making a profit in 2020 are obliged to return these subsidies.
-It was possible to have advance payment of corporate income tax in April, May, and June lifted for these companies, as long as same conditions are met.
-The fourth package, adopted in late October 2020, introduced some novelties such as payment cards for vulnerable citizens and a reduction of VAT on the products and services of artisans and restaurants. The central bank has cut its policy rate three times so far in 2020 (from 2.25 to 1.5 per cent). It has also allowed banks to change loan terms faster and through more straightforward procedures, and it extended the time to classify a loan as non-performing from 90 to 150 days by the end of September 2020. (source)
- As North Macedonia is involved in accession negotiations with the Union since March 2020, the country can apply to EU funds open to accession countries like the EU Solidarity Fund (the fund was set up for natural disasters and now includes public health emergencies).
In addition, the EU has approved assistance for North Macedonia via its neighbourhood programmme (part of its Western Balkans Covid-19 package worth 410m euros). On top of funds for healthcare systems, the EU mobilised up to €62 million to support the social and economic recovery of North Macedonia. How the money is to be spent needs is co--ordinated with the EU, international and national financial institutions “to support the real economy, including SMEs, and support liquidity, also of the banking sector.”
November: International institutions helped to finance the additional costs due to the pandemic. Macro-Financial Assistance from the EU amounted to €160 million, while the IMF’s Rapid Financing Instrument was €176.5 million. Other international organisations and some countries also offered financial support to the country. (source)
RUNDA (the independents music companies associations for the region) asked to see part of these monies used to support music and other cultural sectors.
National measures specific to the music sector or to culture in general
Music sector is asking for income support for employees and tax reduction in a period of lockdown.
Measures taken by local collecting society organisations
Other music fund available
None so far.
Support from online services
No specific support for North Macedonia so far. For more initiatives by online services, click here.
Support from national radio and other media
None so far.
Social media and other campaigns to promote music during the crisis
None so far.
Business and other expected losses
The sector as a whole is suffering from income reduction: from event organisations to record labels and employees. This also affects the overall quality of projects, their realisation and services delivery.
For more info:
RUNDA - Regionalna udruga nezavisnih diskografa - http://runda.online/contact/