26.03.2021
FUNDS ARE PAID TO CLOSED BUSINESSES IN APRIL AND MAY AS WELL
"We have supported the business in the pandemic with nearly BGN 2 billion through the Ministry of Economy and the Ministry of Labor and Social Policy. The disbursement of anti-crisis funds will continue in April and May."
This was stated by Prime Minister Boyko Borisov during the extraordinary government meeting, the government information service announced.
Prime Minister Borisov noted the extremely good work of the National Revenue Agency, during which during the pandemic of COVID-19 were paid over BGN 75 million to nearly 7,000 companies in the closed sectors due to anti-epidemic measures.
Prime Minister Borisov was adamant that people's lives and health are most important because there is no functioning economy without healthy people, and added that everything possible is being done to support the sectors and their employees limited by the pandemic.
During the meeting, the Minister of Economy Mr. Lachezar Borisov reported to the Prime Minister on the scope and effect of anti-epidemic measures in Bulgaria. The Minister specified that of the nearly BGN 2 billion paid to the business so far, over BGN 750 million are through the Ministry of Economy through 10 different developed mechanisms, and through the MLSP - over BGN 1.1 billion.
"Regarding the current joint procedure with the NRA, the second phase of the working capital support program is underway. So far, the National Revenue Agency has paid over BGN 75 million to nearly 7,000 companies and 70% of these funds or over BGN 50 million have reached the restaurant industry," said the Minister of Economy.
Minister Lachezar Borisov stressed that apart from this assistance under the other measures, over BGN 20 million have reached the restaurant industry under the procedure for micro enterprises and the same amount will be provided under the procedure for medium enterprises.
Minister Borisov also informed the Prime Minister about the implementation of the measures for maintaining employment.
BGN 968 million have been paid so far under the 60/40 mechanism and over 300,000 jobs have been preserved. The anti-crisis measure was continued until the end of May 2021. Nearly BGN 150 million have been provided under measure 80/20, and the funds have preserved nearly 30,000 jobs in the Hotel and Restaurant, Transport and Tourism sectors.
Minister Borisov also said that the measure "Keep me" (75/0) continues, which provides a real 100% of the net remuneration of workers, as well as targeted assistance for parents with children under 14 who study at a distance.
"Through the Bulgarian Development Bank we also support individuals through interest-free loans. So far, 37,700 people have received this type of assistance, as well as 1,300 small and medium-sized enterprises, and the total intervention through BDB is BGN 360 million," the Minister of Economy also informed.
Mr. Lachezar Borisov pointed out that measures are to be introduced to transform the economy through the Recovery and Sustainability Plan. It is about the implementation of the measures under three funds in the amount of BGN 900 million. The expectations are that the funds for them will be used by the business within the next 2 years.
The funds are provided through the Technological Modernization Fund and represent a grant of small and medium enterprises in the amount of BGN 400 million, through the Green Transition Fund - another BGN 237,500,000 and through the Digitalization Fund - BGN 237,500,000. The emphasis is to improve the productivity of companies, their resource and energy efficiency.
"All the measures implemented by the government have had an effect. The reason for this is given by the state of GDP - according to this indicator Bulgaria did 50-60% better than the average for the EU and the Eurozone. I can give examples through the decline in GDP in Spain, which is 11%, in France - 8.1%, we are better represented by countries such as Austria and Hungary," said the Minister of Economy. According to him, our unemployment rate is below 7%, which is another proof that the balance between anti-epidemic and economic measures has been preserved.
