How to Maintain the Employment Level?

The partial suspension of employment contracts and social security payments are some of the proposals made by employers in Costa Rica to maintain employment levels in the face of the spread of the Covid-19.

Tuesday, March 17, 2020

Representatives of the Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP), predict that if urgent actions are delayed, unemployment could rise from 12% to 19%.

From the UCCAEP's statement:

The Union of Chambers urged the government to take a series of tax, social, financial and labor measures to help companies face the economic effects, in view of the national emergency by COVID-19.

In addition, the private sector offered the President of the Republic a National Pact for Employment, and proposed the formation of a crisis committee with: The President, Deputies, Mayors and the Union of Chambers (UCCAEP), said Alvaro Saenz, president of the Union of Chambers (UCCAEP).

This will allow businessmen to participate in the construction of solutions to alleviate the crisis. "If urgent actions are delayed, unemployment could rise from 12 to 19 percent," warned the business leader.

Among the financial and fiscal measures, the readjustment of debts and mortgages, as well as the arrears in the payment of credits, stands out, which alleviates the cash flow of the companies.
At the same time, it is necessary to temporarily relax the regulations on reclassification of debtors and their mitigations, in order to have the capacity to restructure credits, extending terms and giving grace periods.

Likewise, the municipal regime -in a joint manner- must cancel all collection of municipal fees and taxes during the emergency.

The business leader insisted on reducing electricity tariffs and making monetary policy instruments, such as legal reserves, more flexible, in order to lower the financial cost and provide the necessary liquidity.

In CentralAmericaData we prepared the interactive report "Business Outlook: Coronavirus Impact on Business Sectors", to help you to prepare and answer questions such as:

How and how much will my company be affected? How much will the decrease in consumption impact on my activity? How much could the demand for my products and services fall in the medium term? Which sectors are most at risk of registering strong falls in their sales? How many of my clients and suppliers could face difficulties?

Interactive report, available online. Delivery in 24 hours.

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