Skopje, 28 November 2023 (MIA) - The government has approved the ninth anti-crisis measures package, amounting to €662 million. Prime Minister Dimitar Kovachevski informed on Tuesday that the package comprises 26 measures for social security, directed towards providing targeted support to vulnerable groups of people and businesses, as well as assistance in overcoming challenges arising from increased living costs and the prolonged effects of the energy crisis.

Effective December 1, the measures outlined in today's press conference will extend support to approximately 120,000 young individuals, over 74,000 socially vulnerable categories, more than 187,000 retirees, 40,000 farmers, nearly 540,000 users of the MyVAT application, 600,000 households, and over 70,000 companies."

“The systemic measures for 2023 and 2024 encompass over 338,000 retirees and 106,000 employees in the administration,” Kovachevski said.

He also noted that the measures intended for citizens, households, and farmers amount to €156 million.

“Within this package of measures, we have implemented support to elevate the student standard for elementary and high school students from families in vulnerable categories with low incomes up to Mden 50,000," announced Kovachevski.

He added that over the next six months, more than 105,000 students in elementary education and high school will receive monthly allowances of Mden 1,200 and 1,800, respectively. Kovachevski pointed out that a total of €14.3 million will be allocated from the budget.

He also added that support will also be provided to 15,000 students living outside their place of study. They will receive a transportation voucher.

"In the upcoming seven months, students will be receiving monthly vouchers ranging from Mden 600 to 1,200, with a designated budget of €2 million. Over the next five months, users of disability allowances, single parents, recipients of guaranteed minimum assistance, and parents of children with disabilities up to the age of 26 will receive Mden 1,000 per month. This measure encompasses 16,741 citizens, with a total budgetary support of €2.7 million,” Kovachevski said.

Support is also provided for retirees with the lowest incomes. In the next five months, as PM Kovachevski outlined, individuals with pensions up to Mden 14,000 will receive Mden 3,000 monthly, those with pensions ranging from Mden 14,000 to 16,000 will receive Mden 2,000 monthly, and those with pensions from Mden 16,000 to 19,000 will receive Mden 1,500 denars. A sum of €35 million is allocated for this purpose.

"Under the new package, an advance subsidy payment is anticipated through the IPARD programme for 40,000 farmers engaged in cultivating crops, field and horticultural crops, vineyards, fruit plantations, and livestock farming. An amount of €8.1 million is allocated for this purpose,” Kovachevski pointed out.

"Through the energy poverty program," he added, "€1 million are earmarked for financial support to over 5,000 families."

A budget of €1.1 million is set aside for approximately 2,250 beneficiaries to receive financial assistance for household investments in renewable energy sources and energy efficiency. This support includes assistance for photovoltaic panels, up to a maximum of Mden 80,000, a maximum of Mden 15,000 for solar systems, and up to a maximum of Mden 25,000 for the installation of PVC windows and doors, Kovachevski added.

He announced the continuation of the electricity subsidy program, with a sustained 90% subsidy on the electricity price for 611,000 households and 68,000 small consumers. The projected cost for this measure is €35 million.

“This year, a subsidized price for district heating will be provided to households and companies, benefiting 63,000 users in Skopje. The estimated cost for this initiative is €7.4 million,” Kovachevski noted.

As he stated, financial support for electricity bills will continue for households with low incomes, recipients of guaranteed minimum assistance, and social pension beneficiaries. "For them, the support will amount to Mden 1,200 per month over the next six months. This measure covers over 50,000 users and totals €5.9 million," he added.

"To ensure liquidity in companies, enhance competitiveness, and encourage investments in renewable energy sources in the private sector," he added, "€492 million are set aside."

As part of the measures, favourable loans of €10 million are provided for small and medium enterprises for investments in projects related to energy efficiency and renewable energy sources through the issuance of green bonds. The range of companies eligible for the guarantee scheme from the guarantee fund of the Development Bank is being expanded through the easing of application criteria, with an allocation of €39 million.

“Through collaboration with the EIB, we are planning a beneficial seventh credit line for green transition, totalling €100 million. This funding is intended for investments in energy efficiency and renewable energy sources, following the 1+1 principle. In collaboration with the French Development Agency, a favourable credit line of €50 million is planned to support women entrepreneurship, digitization, and projects contributing to the reduction of negative effects from climate change, as well as projects with a positive impact on the environment. In collaboration with the Council of Europe Development Bank, €50 million are planned for favourable loans for small and medium enterprises, job creation and retention, support for women entrepreneurship, and green investments,” he underlined.

Approval for the use of milk powder in the production of milk and dairy products is also envisaged to reduce retail prices.

“In this package of measures, we have provided financial support for subsidizing contributions for new and existing employees, aiming to increase workers' salaries by Mden 3,000 to 9,000 denars,” Kovachevski said.

"The support for the public sector continues, with a total allocation of €14.9 million. In cooperation with the World Bank, favourable loans are provided for municipalities for investments in energy efficiency, amounting to €10 million," Kovachevski said, adding that €5 million are secured for the Energy Efficiency Fund in the Development Bank in collaboration with the World Bank to finance projects for energy efficiency and renewable energy," Kovachevski said.

"We are moving forward," he emphasized, "with systemic measures to alleviate the effects of the economic and energy crisis, with a total allocation of €516 million, including €189 million in 2023 and €327 million in 2024.

“Of this, €36.2 million are allocated for increasing salaries in the public sector as an adjustment to the minimum wage for 2023, and €52 million for salary increases in the public sector based on the general collective agreement, with a 10% increase and payment of annual leave allowance,” Kovachevski said.

The same measure includes an allocation of €150 million for the year 2024. For 2023, €100 million are earmarked for the payment of increased pensions for over 338,000 pensioners, while €178 million are projected for 2024 for pension hikes based on the new methodology.

Responding to a question, Finance Minister Fatmir Besimi explained that the anti-crisis measures are funded from public revenues and are not financed through loans. He pointed out that these measures are planned in the budgets for 2023 and 2024.

Photo: MIA