Temporary measure in the field of bank loans

The Government is aware that present circumstances caused temporary liquidity constraints for borrowers. To this end, it drafted a temporary measure in the field of bank loans for legal entities and natural persons. The measure binds banks and savings banks, including their subsidiaries with head offices in Slovenia, to grant a deferral of loan payment for a period of 12 months to borrowers who incurred damage due to floods or landslides.

Interest in the utmost amount of a 12-month Euribor + 0 per cent or based on a regular interest rate agreed upon the conclusion of the contract can be charged for the deferred part of the principal during the moratorium if this is more favourable for the borrower. Banks will not charge any costs for granting deferment of payment.

The measure is intended for:

• companies with head offices in Slovenia which incurred damage in the amount of at least EUR 100,000,
• cooperatives, associations, institutes, institutions, natural persons employing workers or self-employed persons with head offices or permanent residence in Slovenia that have incurred damage in the amount of at least EUR 10,000,
• heads of agricultural holdings or holders of complementary farm activities that have incurred damage in the amount of at least EUR 10,000,
• natural persons with Slovenian citizenship and permanent residence in Slovenia who have incurred damage in the amount of at least EUR 10,000.

Important deadlines

Borrowers must submit their applications for deferral of payment to the banks no later than by 31 December 2023.

Necessary documents

Borrowers should contact their banks to obtain the applications for deferral. The content of the application is defined by Article 152 of the Act Determining the Intervention Measures to Remedy the Consequences of the Floods and Landslides in August 2023.

A company classified as a large company should justify in the application that it fulfils tax obligations but is unable to repay its obligations under the credit agreement with the bank due to business reasons linked with the consequences of floods or landslides, since such repayment would result in liquidity issues to the extent of endangering the company’s solvency.

• To this end, the company should submit a description of the commercial situation due to the consequences of floods or landslides and a statement saying that on 31 July 2023 it had no overdue compulsory duties and other financial non-tax obligations exceeding EUR 50.
• It is understood that the business entity does not fulfil the obligations referred to in the previous sentence if it failed to provide all accounts of the withholding tax on income from employment for the last five years.

Companies classified as micro, small or medium-sized enterprises and cooperatives, associations, institutes, institutions, natural persons employing workers as per the act governing employment relationships, heads of agricultural holdings, holders of complementary farm activities or self-employed persons must prove that they fulfil their tax obligations. Furthermore, they must explain that they are unable to repay obligations under the credit agreement with the bank due to business reasons linked with the consequences of floods or landslides.

• To this end, they must submit a description of their commercial situation due to the consequences of floods or landslides and a statement saying that on 31 July 2023 they had no overdue compulsory duties and other financial non-tax obligations exceeding EUR 50.
• It is understood that the business entity does also not fulfil its obligations if it failed to provide all accounts of the withholding tax on income from employment for the last five years.

Natural persons must explain that they are temporarily unable to repay obligations under the credit agreement with the bank due to circumstances linked with the consequences of floods or landslides.

• To this end, they must submit a description of facts and circumstances linked with the consequences of floods or landslides that have affected their financial situation.

Deferred payment of loans from public funds

Everyone who has received loans from public funds in the past can request deferred payment of loans for a period of 12 months. Public funds, such as the Slovene Enterprise Fund, the Slovenian Regional Development Fund and the Eco Fund, may grant borrowers deferred payment of liabilities under credit agreements which had not been due for payment before the day the amended act entered into force.

The measure is intended for:

• all borrowers who are unable to pay their loan liabilities due to the consequences of the August floods.

Important deadlines

The companies must submit their applications by 31 December 2023.

More information

For additional information, contact the public fund that granted you the credit:

• Eko sklad, telephone: +386 1 241 48 79, e-mail: gp@ekosklad.si,
• Stanovanjski sklad RS, telephone: +386 1 4710 500, e-mail: ssrsinfo@ssrs.si,
• Slovenski podjetniški sklad, telephone: +386 2 234 12 60, e-mail: info@podjetniskisklad.si. 

Liquidity facilities

It will be possible to earmark the funds received by SID Bank and the Slovene Enterprise Fund within the Act Governing Aid to Businesses to Mitigate the Impact of the Energy Crisis for the elimination of the consequences of floods in 2023. These will be in the form of favourable loans of SID Bank and the Slovene Enterprise Fund for tangible and intangible investments and current assets. 

Funds available

Some EUR 100 million in total will be available at SID Bank and EUR 30 million at the Slovene Enterprise Fund. The funds will be available for the elimination of the consequences of the energy crisis and the elimination of the consequences of floods.

Financial engineering

SID Bank is offering the measure of financial engineering intended for the elimination of natural disasters, which is composed of:

• the loan fund in the amount of EUR 100 million and
• the guarantee scheme in the amount of EUR 100 million.

The funds must be utilised within two years.

The measure is intended for: 

• companies, sole proprietors, institutes, cooperatives,
• heads of agricultural holdings, and
• concessionaires in freshwater fishing.

The loans and guarantees are allocated on the basis of Article 50 of the General Block Exemption Regulation or the de minimis rule. The sum of the allocated funds (together with other aid) must not exceed the amount of the actual damage.

Loans for small and medium-sized companies covered by the SID Bank’s guarantee

The programme is intended to finance funds for investments in property, plant and equipment and intangible assets or to cover the costs of material, services, small tools, consumables and labour. The financing enables a 62.5-per cent, free, unconditional and first-class guarantee of SID Bank. This is intended for loans ranging between EUR 30,000 and EUR 10,000,000 for the lending period of between three to ten years. The moratorium on the repayment of the principal is possible up to one half of the loan maturity.

The measure is intended for:

• legal entities or sole proprietors with the status of a micro, small or medium-sized company.

Important deadlines

The application must be submitted no later than by 31 December 2023; however, the measure will only be available until the funds are exhausted.

Contacts of selected banks

Loans can be taken out from selected banks and savings banks selected by SID Bank through a public call. The financial institutions selected also provide loan guarantees. Below are fast contacts for more information:

• Nova Ljubljanska banka, info@nlb.si, +386 1 477 20 00
• Delavska hranilnica, ziga.jurhar@dh.si, +386 41 434 403
• Primorska hranilnica Vipava, info@phv.si, +386 5 366 45 22

Taxation of accommodation

If an employer provides free accommodation or accommodation with lower rent for persons who had to seek new or temporary accommodation due to floods and landslides, this bonus (income they actually save) will not be included in the income tax base until the end of 2024.

When determining the tax base as per actual income and expenses for companies and sole proprietors, the expenses arising in connection with such accommodation until the end of 2024 will be acknowledged.

The measure is intended for:

• persons who had to find new or temporary accommodation due to floods and landslides,
• and companies and sole proprietors who provided the accommodation.

Favourable taxation regarding equipment destroyed

The companies and sole proprietors who had equipment which was purchased less than three years ago destroyed in the floods in August 2023 and if the tax relief for investing in the equipment had already been claimed will not have to increase the tax base in the amount of tax relief during the period of destruction.

The measure is intended for: 

• companies and sole proprietors whose tax base is established on the basis of actual income and expenses.

Electricity billing at a lower rate on 14 August

On Monday, 14 August 2023 (Solidarity Day), electricity for all citizens of the Republic of Slovenia was calculated at a lower rate. The suppliers will calculate the use of electricity at a lower rate on their own initiative. 

The measure is intended for:

• all citizens of the Republic of Slovenia on Solidarity Day.

For further information, please contact your electricity supplier.

Use of an alternative energy source before the start of the heating season

The consumers for whom it will not be possible to supply the chosen energy source before the start of the heating season due to the floods have the right to use another energy source. Based on the inability to implement contracts on supply and access, they will not need to bear the negative consequences arising from their existing contractual relationships. 

The measure is intended for: 

• household and business consumers who do not have a guaranteed supply of the energy source selected before the start of the heating season due to the consequences of floods.

Important deadlines

Within 15 days of the entry into force of the Act, the supplier must inform its consumers that they will be unable to supply them with heat until 1 October 2023. Simultaneously, the supplier will have to inform them when the supply of the energy product will be possible. Once the consumers have received the notification from their suppliers, they will have the right to use another energy source which they arrange themselves.

For further information, please contact your electricity supplier.

Extension of deadlines for project implementation

Within its capacities, the Ministry of the Economy, Tourism and Sport will strive to meet the proposals forwarded by companies and municipalities to extend the deadlines for project implementation, submission of payment claims and reports, and if necessary, other deadlines and commitments under the co-financing contracts for the affected companies.

The measure is intended for:

• companies to which the Ministry of the Economy, Tourism and Sport allocated funds for implementation of the projects applied.