MedLife cuts salaries of the management team by 50 percent for 45 days

MedLife Group announces a series of measures to limit the impact of the crisis causes by coronavirus. The company has agreed the reduction by 50% of the salaries of the management team for a period of 45 days. MedLife is also reducing the costs related to the administrative departments by sending non-critical personnel into technical unemployment.

As a result of measures adopted by the Government of Romania to prevent the spread of SARS-CoV-2 (Coronavirus), MedLife informs investors and shareholders of the most recent measures that have a direct impact on the Group’s activity. The management team took the following measures:

1. Agreed reduction by 50% of the salaries of the management team for a period of 45 days.
2. Reducing the costs related to the administrative departments by sending non-critical personnel into technical unemployment. The costs will be borne by the Romanian Government up to a level of 75% of the average salary per economy; for salaries that exceed the average per economy, the difference will be borne by MedLife Group. The measure will enter into force starting March 26. 3. Decrease the working hours for key administrative personnel from 5 to 4 working days, starting March 26.
3. Negotiation with all landlords of premises in which MedLife Group operates, with the purpose of delaying or reducing the rent payments for the next period.
4. Negotiation with secondary service providers which are not mandatory for MedLife Group during this period in order to suspend the collaboration for the next period.
5. Advanced discussions with the banks to increase the liquidity available at Group level, from which we received all the support, already ensuring a comfortable liquidity for a term of 3-6 months. These liquidities add to own funds available at Group level.