Caretaker Government Proposes New Measures to Support Bulgarian Business

We are seeing a smooth transition from lockdown to economic revival. The economy is on the track to recovering and picking up speed. This is borne out by the unemployment rate which now stands at 5,65 percent. What we are doing with our colleagues from the Council of Ministers is aimed to support business and develop additional incentives so that the Bulgarian business can feel a sustainable support from the state and pursue its normal economic activity, Deputy Prime Minister and Minister of Labor and Social Policy Galab Donev said.

“We will extend the 60/40 payroll support measure by another two months within the notified amount of State aid, which amounts to BGN 1.5 billion. So far BGN nearly 1.4 billion has been spent, so we can continue it with some adjustments, but this will happen after we receive approval from the of State Aid Directorate of the European Commission,” the Deputy Prime Minister explained.

“Next week I hope to hold a meeting with the National Council for Tripartite Cooperation on the parameters of the measure and its extension. We will also continue the dialogue with the social partners on the development of new measures to be notified before the EC to help the Bulgarian business to benefit from the opportunities provided by the temporary state aid measure in order to be competitive”, Minister Donev concluded.

“We are giving banks a free hand. SMEs will be able to effect a swift revival and have access to circulating capital,” Minister of Economy in the caretaker cabinet Kiril Petkov stated. With a 1.25 billion euro fund the state will guarantee before commercial banks that the loans for businesses shall be granted without security. “This means that within the space of 10 days you can apply only if you are a genuine business with documents going back 3 years, and get up to 80% of your earnings,” Kiril Petkov. He described the 10-day application deadline as unprecedented. The loans will have a repayment term of up to 7 years. Self-employed persons shall also be able to avail themselves of this credit instrument, he said