Measures in the Czech Republic related to COVID-19 (as of 10 June)

Published: 10.06.2020 Related countries:  Belgium Belgium

Updated information about measures of Czech government related to COVID-19, including support measures for entrepreneurs and companies.

Life in the Czech Republic is slowly, but surely going back to normal.

General measures

The restrictions for entering and leaving the country relaxed. As of 5 June, state border controls with Austria and Germany, which were put in place to protect against the spread of coronavirus, were ended. This was decided by the Government at an extraordinary meeting on Friday, June 5. Normal situation was also restored at the borders with Slovakia and Austria. People returning from any of these countries do not have to show negative tests for COVID-19 when returning to the Czech Republic. The police only does random checks focused on foreign nationals entering the country. 

As of 6 June, it is possible to organise theatrical, musical, cinematographic and other artistic performances, sporting, cultural, religious, federal, dance, traditional and similar events and other gatherings, exhibitions, festivities, pilgrimages, shows, tastings, markets and fairs, educational events, celebrations, namely both public and private, with a participation exceeding 500 people at the same time. Furthermore, it is allowed to do sport activities in sport parks, outdoors in the nature and other publicly accessible places with a condition that there will be a maximum of 500 people exercising at the same time. 

Economic measures

On 22 May, the Czech Trade Promotion Agency CzechTrade informed that during the coronavirus pandemic, it provided services to domestic companies worth more than CZK 12.5 million. Approximately 750 individual export services were used by 350 small and medium-sized enterprises. CzechTrade introduced a temporary free service after consultation with the Ministry of Industry and Trade to help exporters shortly after the declaration of a state of emergency. It also supported entrepreneurs through online educational events and handling inquiries in the Client Centre. 

On 29 May, the Czech-Moravian Guarantee and Development Bank (ČMZRB) signed contracts with 20 banks and savings cooperatives for the COVID III program. Based on market shares, the amounts of guaranteed portfolios were calculated for individual financial institutions. In the first round of the call, banks and savings cooperatives will provide loans to entrepreneurs in the amount of up to CZK 167 billion. As part of the COVID III program, ČMZRB guarantees loan portfolios of individual commercial banks and savings cooperatives. Through it, companies with up to 250 employees will receive a guarantee of up to 90% and companies with 250 - 500 employees up to 80%. The maximum amount of the guaranteed loan is CZK 50 million.

On 3 June, The European Commission approved a Czech scheme worth CZK 1 billion (approximately EUR 36.3 million) to support small and medium-sized enterprises (SMEs) active in the primary agricultural sector affected by the coronavirus outbreak. The public support, which will take the form of direct grants, will be open to SMEs active in the primary agricultural production sector (farmers). The aid is specifically intended to partially reduce the outstanding amounts of operating bank loans to these SMEs and will cover up to 50% of the unpaid loan amount. The measure is expected to support approximately 5,000 SMEs.

On 4 June, the The Ministry of Industry and Trade stopped receiving applications for support in the second competition round of the sub-program "Innovation into Practice" of the program The Country for the Future, which was aimed at combating the COVID-19 pandemic and mitigating its effects. The Ministry of Industry and Trade received 60 applications with planned project costs of over CZK 700 million and a total required subsidy of CZK 400 million. The projects will focus on innovations in the processes of production of protective devices, medical supplies, as well as projects on the introduction of new production and management procedures, including new business models and customer service that will reduce the need for physical contact, they will use digitization, automation, artificial intelligence, virtual reality, 3D printing etc. 

Health situation

As of 10 June, there were 9 763 confirmed cases of coronavirus with 330 deaths and 7 057 cured patients. The number of tested persons reached 483 123.

 

Source: Government of the Czech Republic, Ministry of Industry and Trade of the Czech Republic, BusinessInfo.cz, European Commission

Prepared by the team of foreign office CzechTrade Brussels