26.08.2021

ENTREPRENEURSHIP: HOW FINTECH SOLUTIONS PUSH SMALL BUSINESSES FORWARD

New technologies provide a competitive advantage

Autumn is coming, especially for small entrepreneurs. However, some retailers have already realized that they can stay competitive by using fintech solutions designed specifically to help small and medium-sized businesses.

We are talking about innovations such as accepting contactless payments over the phone, fast and free creation of an online store and POS terminals that give immediate access to the funds received.

Small companies can afford all this for a small investment thanks to the Bulgarian company myPOS, which for the second year in a row won an award for innovation from the prestigious FinTech Breakthrough forum, which evaluates the best financial technologies in the world.

myPOS has over 130,000 business customers in over 30 European countries, and one of the company's unique innovations is the myPOS Glass mobile app, which turns an ordinary Android phone into a POS terminal via the NFC chip available in most smartphones. To make a payment, customers simply need to bring their card or smart accessory to the back of the merchant's phone.

It is the myPOS Glass application and the use of NFC technology that attract the attention of Nikolay Nikolov, owner of a pet store and two computer repair shops in Sunny Beach. "I work with 60% of foreign tourists and 40% of them prefer to pay by card," he explains. missed because people only had a card in them and if I didn't have the option to pay me, they would just leave, "Nikolov added.

Easy to use applications and secure increase in turnover

Initially, Nikolov was attracted by myPOS Glass, but decided to invest in the compact myPOS Go terminal, as according to him its price is very affordable, and it happens that there are customers whose cards are not contactless. He says he uses both devices actively because they make his business easier.

It is a great convenience for merchants like him that with myPOS they get a complete solution for accepting card payments: easy-to-use POS terminals; immediate absorption of the accepted funds; free online commercial account with IBAN; free Mastercard business debit card and other tools.

Nikolov also says that for him the biggest advantages are the free applications and the low fees. "The investment is minimal for what you get, namely quality service, easy work with applications and certainly increased turnover," he added.

Flexible products that help businesses grow

Also important is the fact that myPOS has no monthly fees, which is a peace of mind for small businesses. "All products are designed to help the business, not burden it," said Maxim Kochnev, CEO of myPOS. Businesses currently need smart solutions to help them meet customer requirements and emergencies without serious investment."

According to Kochnev, myPOS is always looking for ways to respond to customer needs, which leads to an increase in sales - last year the reported growth was double-digit despite the pandemic, and this year sales are growing by another 60 percent on an annual basis.

"The dynamic changes caused by the coronavirus have given us a reason to start working on fast-growing projects that we can be proud of. For example, when we launched myPOS Glass, another company developed a similar solution for accepting card payments over the phone, was acquired by Apple for one hundred million dollars. This clearly shows that in myPOS we have the ability to feel the market and the needs of our customers, "explains Kochnev.

Good market research also inspires the company's latest service - the myPOS Online platform, with which every merchant can build and manage a free online store.

What makes the service one of a kind is that the merchant only pays when he makes a sale.

Free online store to promote sales

myPOS Online offers a huge range of features, including inventory tracking, modern methods of secure payment, delivery or pick-up options, as well as pre-prepared design themes from which merchants can choose the most suitable for their online store. The free service also includes hosting.

Even those for whom it was unthinkable to trade electronically can now do so, because myPOS Online takes care of all the requirements and details. No technical knowledge in the fields of programming or design is required, and myPOS has taken care of the secure acceptance of online payments, as well as legal documents. The platform also offers an optimized check-out process, a high level of security, support, order tracking and features for easy communication with customers.

"If a few years ago the online presence of business was recommended, now it is necessary. The pandemic is not over yet, and all analyzes predict the growth of e-commerce," Kochnev said.

Indeed, online payments in Central and Eastern Europe are growing exponentially as a result of COVID-19. The demand for contactless payments and automated service - the so-called self-service, or self-service machines - is also increasing.

Automated payment solutions corresponding to the new reality

"In Japan, the variety of vending machines, where it is possible to buy virtually anything, has long been new. This trend is also coming to Europe, partly out of necessity. For example, in 2020 the first vending machines selling masks and antibacterial gels appeared. In the new conditions, consumers demand an improved experience, which is associated with round-the-clock, secure and contactless access to a variety of goods and services," said Dimi Ilieva, Marketing Director of myPOS.

To meet the demand, a number of Bulgarian companies partner with myPOS and thus manage to offer consumers improved automated service, in line with global trends. Examples are Yantra Technology and Digital Receptionist Eva.

Yantra Technology offers automated parking solutions in some of the largest retail outlets and business centers in Bulgaria. Their counting and traffic flow control systems are integrated with myPOS Mini and myPOS Integra devices, which enables electronic payment.

"More and more people have the need and desire to pay contactlessly, because it is much easier," summarize the company's co-owners Orlin Petrov and Iliya Topalov.

The latest functionality presented by Yantra Technology in partnership with myPOS is the ability for customers to pay via QR code for their parking stay.

"You scan the ticket code while you're in the car, the system checks your stay and all the other details and shows you what you owe. So you can pay while traveling to the barrier - by card or with Google and Apple Pay. No need to leave the car or to look for a payment machine", explain Petrov and Topalov, who have been partnering with myPOS for more than a year.

The other interesting partner of the fintech company is "Digital receptionist Eva" - a kiosk that fully automates the hotel check-in. It speaks all the necessary languages ​​and also accepts payments via myPOS terminal.

"Hospitality is a conservative industry, but we already have to look at automation solutions," said Valentin Gadjonov, one of the creators of the digital receptionist. According to him, the digitalization of small business is inevitable and the pandemic has simply accelerated this development.

In addition to meeting emergency conditions and providing staff protection, the digital receptionist is an excellent option for small hotels that do not have the physical ability to cover night shifts.

In fact, all myPOS payment solutions are designed to work around the clock so that the business can grow constantly. The idea of ​​the fintech company is not just for retailers to have access to various services, but to take advantage of a comprehensive business management package. Therefore, myPOS continues to evolve into a business hub in which the merchant has access to important business management tools through his account.

"In myPOS we can not continue only in the space of POS terminals, not only because we can see early what lies ahead, but also because we have the resources and motivation to offer the business working with us much more than payment terminals," says Ilieva.

"Not to mention that with the pace at which the financial and technological world is moving, the time is not so far when physical payment devices will be replaced by virtual ones. Even now we pay in cyberspace with a single QR code. In many countries now the trend is towards full digitalisation and transfer of payments in a fully mobile environment", she added.

It is clear that the digitalisation of business is inevitable. Importantly, however, some technology solutions give businesses a chance to stay liquid in difficult times. Companies like myPOS create innovations to make it easier for merchants and help them reach new customers, and most customers are looking for change.

"We are definitely seeing an "opening" of both consumers and traders to fintech solutions," said Dimi Ilieva. "The good news is that there is significant development of the sector in the country - in their latest survey Findexable ranks us 39th in the world, with 17 positions ahead in one year, and judging by the leading markets of myPOS - France, Italy, the Netherlands, the rapid development of card payments and related technologies in the country is yet to come."

25.08.2021

OPPORTUNITIES FOR GRANTS OF GREEN BUSINESS PROJECTS

Bulgarian companies will compete with the other in the EU for LIFE 2021-2027 funding

The European Commission announced in July the first LIFE 2021-2027 Procedures. It promotes projects related to two areas - environment and climate action. The program consists of four sub-programs - "nature and biodiversity", "circular economy and quality of life", "mitigation and adaptation to climate change" and "transition to clean energy". Its total budget for the period 2021-2027 is 5.4 billion euros, with two of the procedures open to the application being particularly interested in business.

The first is a "Circular economy, waste resources, air, water, soil, noise, chemicals, Bauhaus" with a total budget of EUR 95.420 million. The eligible project budget is within 2-10 million euros, with the grant to 60% of it. Projects related to innovative technologies, methods and approaches or best practices (both at a Member State or sector level) are supported in the sphere of:

• Waste - demonstration and promotion of innovative techniques, methods and approaches and / or good practices (separate collection and recycling of waste, identifying, tracing, separating, waste prevention containing dangerous substances);
• Water (safe and efficient use of water resources; Conservation of the sea and its coast; Purification of drinking water and urban waste water);
• Soils (recovery technologies, soil quality);
• noise (innovative solutions with high environmental and economic sustainability to reduce noise in densely populated urban areas);
• air (reduction of air pollutants and solid particulate emissions);
• Chemicals (preventing and reducing the impact of chemical production on the environment and human health);
• Bauhaus initiative (reducing the environmental impact of new buildings and architectural approaches to maintaining and recovering biodiversity) and others.

Projects should contribute to reducing resource consumption and facilitating the transition to sustainable, circular, non-toxic, energy-efficient and climate-resistant economy; reducing the formation and improvement of waste management; protection of water resources, air, soils; Reduction of production, use and emissions of hazardous chemicals; reducing exposure to harmful noise levels.

The first procedures are already open.

The second open call for application of particular interest to business is "Mitigating climate change" with a total resource of EUR 30.5 million. Supported projects are expected to be within 1-5 million euros each, and the grant can again reach 60%. Eligible activities are related to the introduction of innovative technologies, methods and approaches or best practices (both at a Member State or sector level):

• Reducing greenhouse gas emissions in sectors not included in the European Emissions Trading Scheme (ETS), incl. Reducing the use of fluorinated greenhouse gases and ozone-depleting substances and transition activities to 0 emission mobility (emphasis are the projects addressing alternatives to fluorinated gases, regeneration and recycling of fluorinated greenhouse gases and the removal of barriers placed by standards);
• Activities to improve the functioning of the ETS and impact on the energy and intensive greenhouse gas production. Proposals should be targeted at energy-intensive industries and in particular to those in which there is a significant risk of leakage of carbon. Priority will be given to projects developing and demonstrating innovative and cost-effective technologies and processes to reduce greenhouse gas emissions;
• Activities to increase the production and use of renewable energy and improving energy efficiency;
• Land and water management practices affecting emissions and their elimination; Conservation and improvement of natural carbon tanks.

Both calls may apply legal entities (public and private) without limitation on their size (including native and large enterprises), associations and international organizations.

Eligible costs on both funding opportunities include purchasing equipment and depreciation, land purchase (under certain conditions), subcontract costs, indirect costs (up to 7%), staff remuneration, road, daily and cost Third countries necessary for the implementation of the project. Partnerships are not mandatory for participation, but their presence is better evaluated.

The deadline for application for non-grants "circular economy, waste resources, air, water, soil, noise, chemicals, Bauhaus" and "mitigation climate change" is 30 November 2021, and project submission is electronic through the European Commission's portal.

24.08.2021

ENTREPRENEURSHIP: INVESTMENT CREDIT TO LAUNCH A SMALL BUSINESS

Creative freedom, personal satisfaction and financial independence. As the owner of a business person, he has the opportunity to work in an area he really likes. In addition, there is freedom to use their skills and knowledge and get personal satisfaction from applying their ideas for business success.

Launching your own business is not an easy venture. However, there are many young entrepreneurs in Bulgaria seeking lending to small business loans. One of the basic conditions is the existence of initial rental capital, equipment, inventory with which most people do not have. And if you do not have enough money or Business Angel, investing in your idea, you have to resort to taking a loan.

Assistance comes banks and other financial institutions offering a variety of types of company and quick credit to launch small and medium businesses. Suggestions are numerous and with a variety of options. You can find loans without a guarantor, rapid corporate loans without collateral, with no business plan with low interest, with minimum documents and many more opportunities for newly opened companies.

Determine the amount required

Often, people think they will need an impossible amount to develop their business idea. The truth is that there is no huge capital for the launch of a small business. Calculate the amount that is the absolute minimum to start work. It is very likely to be surprised when you find that it is not as big as you have done at the beginning.

To begin with, invest a certain amount and wait for you to start receiving income from your company before you put on more money. Therefore, when drawing credit, I specify the minimum you need for a start. Do not risk a larger amount so you do not fall into a difficult financial situation from the start of the venture.

To determine with greater accuracy the required amount of this credit to launch a small business, make a list of all available resources. Including savings, partners, materials, skills that you can put into the idea. All these things can reduce the total you consider to download. Finally, it may be enough that they are enough to start without credit.

Is the business loan being profitable?

If you still consider that you need greater initial capital thanks to the loan you will get quick funding for all your urgent costs since the startup itself. However, it is likely that such a loan requires collateral in the form of movable or immovable property.

Many banks and other financial institutions offer different business loans. When withdrawing such a loan, you will have to go through Red Bureaucratic checks that can delay the granting process. Loans are usually long-term, with free repayment of the principal, interest rates only on the absorption, the amount of which changes depending on the amount of monthly transactions incurred.

If you need urgent money to start your own business, you can also contact creditors who offer quick credits. In their application, the application procedure is much more lightweight, so you will receive the required amount significantly more soon. The minus is that usually the conditions are not as advantageous compared to banks, as the deadlines are shorter and interest - higher.

That is why it is important to answer the question how urgently you need the money. This will judge the situation objectively so you can choose the creditor right for you. Emergency costs for a new business are, for example, purchase of raw material for production or workers' salaries. In all other cases, you need to make sure that the money input will multiply as to allow you to pay the credit with interest and bring you a profit.

What are you watching for?

Before proceeding to signing the contract, carefully get acquainted with all clauses on it, which may include hidden fees and other unfavorable conditions. Make sure you understand the value of the penalty fees in case you are late with a contribution. Inform with which credit agent, you can contact the emergence of questions, problems or complaints and whether there is a person who could protect your rights.

When choosing a financial institution from downloading the loan, study all possible options, offers and promotions. Online has easily accessible information that will help you compare the proposals at an initial stage. The right choice will save you a lot of money and problems in the future. For example, lower interest rates necessarily mean that credit is cheaper, so pay attention to all conditions.

Loan applications in banks follow certain rules and policies before approval. There is always a risk that the requirements not be met by the applicant and the credit for a start-up business is prevented. Therefore, before applying for a loan, check all the criteria that the Bank requires to start processing the application. If you don't do this you may lose a lot of time and effort.

If you are looking for rapid funding for a non-history company that is facilitated applying, the micro credit is also a variant. It is a small amount for a short period of time and money can be at your disposal within a few minutes after approval. Be careful, however, do not come across fraudulent non-bank institutions to abuse your trust.

To make sure the creditor's honesty, the first thing you need to do is check if the company has a license from the BNB and what is the source of funding. Do not download a micro credit that you will not be able to cover with income from your business because it can often get to withdraw a new micro credit.

Credits are secured against assets and this can become a major problem if business does not bring enough earnings to repay the creditor. If your activity does not generate the required profit, you will have to betray your assets. Therefore, you should carefully consider whether to secure the loan against assets at risk of losing some of their business.

16.08.2021

THE SEARCH FOR INTEREST-BEARING LOANS ON THE BDI GUARANTEE PROGRAM CONTINUES

The anti-crisis measure is extended by the end of August

BDB continues to provide liquidity and security for companies affected by the Covid-19 pandemic. In June to the business, they have reached guarantees for funding provided for BGN 24 075 560 under the 151 contracts concluded.

In July, banks' banks in the anti-crisis program received from BDR confirmation to guarantee 94 credits worth more than BGN 23 million. Loans for over BGN 320.3 million were allocated in 2020.

The recently renovated BDB's warranty program will enable Bulgarian companies to apply at shorter approval and relieved collateral requirements.

"In this way, the government synchronizes the program with the Mechanism for Intervention and Support" A portfolio guarantee to overcome the consequences of the COVID-19" (" Recovery Program"). Funding can be up to BGN 3 million, regardless of the size of the company, and the term for repayment of credits is up to 7 years with the possibility of up to a 3-year grace period. The EC approval is expected to enter into force the new program conditions", say BDBs.

Continue and demand for interest-bearing loans on the Bank's Guarantee Program in support of people who can not work because of the pandemic. The anti-crisis measure is prolonged until the end of August or depleting the limit in partner banks. For the last two months, 3,463 credits for nearly BGN 18.8 million were guaranteed.

Since 2020, 52,555 people benefited from 2020, and the amount of funds allocated is over BGN 252.2 million.

16.08.2021

UNEMPLOYMENT DROPS TO 5%

The level of registered unemployment in the country continued to decline in July reached 5 percent, according to the data from the administrative statistics of the Employment Agency. This was announced by the press center of the agency.

The decrease compared to the previous month was 0.2 per cent and the decline on an annual basis was 2.9 percentage points from 7.9 per cent in July 2020 to 5 per cent in July 2021 compared to the end of July 2019 - year, generally record-up in employment growth, the level of unemployment also decreases by 0.3 percentage points.

Registered unemployed during the month are 165 134, which is 5582 less than June and 93 419 or 36.1 per cent, less than a year earlier. New 20,451 unemployed, the reduction was 90 people compared to the previous month, and there was a decline of 7613 people compared to July 2020. Others 662 people from jobseekers' groups employed, learners and pensioners have also signed up at the Employment Agency during the month.

In July 17,856 unemployed started work. The data from the administrative statistics of the Employment Agency reported a decrease in their number by 8234 compared to June and a decrease of 9567 compared to the same month of the previous year. Other 474 of the pensioners' groups, learners and employees have also found their new workplace through the Labor Offices.

A total of 75.2 per cent of the work started in July was developed in the real economy, and most employed in the manufacturing sector - 22.5 per cent, followed by trade by 14.8 per cent, hospitality and restaurant with 13 , 3 per cent, government - 6.5 per cent, construction - 5.7 per cent, agriculture, forestry and fishery -4.6 per cent, human health and social work with 3.8 per cent, administrative and adjuvants Activities - 3.7 per cent, transport - by 2.9 per cent others.

A total of 4423 unemployed by the risk groups has been recruited to subsidized jobs during the month - 530 under programs and employment measures and 3893 - under the Human Resources Development Program (OP). The Employment Scheme for You under the HRD OP, which launched in July 2020 as an anti-crisis measure, has secured more than 32,000 unemployed, with employment contracts with new 1864 unemployed in July.

The repayment of funds under the anti-crisis measure for short-term employment support - the well-known 60/40 already. Thus, through its month, more than 79,000 employees received their financial compensation from the state. The measure "kept me" funded under the HRD and the React-EU Financial Mechanism to support forced unpaid leave imposed by the suspension of a number of economic activities in order to control the Covid-19 pandemic provided by the end of July the funds of the nearly 58,000 employees.

Applied jobs on the primary labor market in July are 15,700 or 3928 (20 per cent) less than the previous month and 649 (4 per cent) less than the same month of 2020 largest share Job vacancies in the real economy are requested in the manufacturing (30.8 per cent), followed by hospitality and restaurant (12.1 per cent), trade, car repair and motorcycles (10.9 per cent), education (9.2 per cent), administrative and adjuvants Activities (8.5 per cent) and government (6.8 per cent).

The most sought-after professions during the month are: machine operators of stationary machinery and equipment; staff employed in the field of personal services; workers in mining and manufacturing, construction and transport; Teachers; sellers; People who care for people; Qualified workers for food production, clothing, wooden products and related; waste collection workers and related workers; cleaners and assistants; drivers of vehicles and movable facilities and others.

15.08.2021

HOW MUCH DOES THE MINIMUM WAGE RAISE IN OUR COUNTRY

The minimum wage in Bulgaria has risen for the period from 2017 - 2021 by 41.3% - from BGN 460 in 2017 to 650 leva in 20121. The average is increasing for the same period by almost 50 per cent - from 1001 BGN in the beginning of 2017 to BGN 1462 in the first quarter of this. This is understood by the answer to the work minister of Labor and Social Policy Galab Donev to a Deputy Question.

According to the Minister, minimum wage growth reduces wage inequality and reduces workers' poverty. It mainly affects minimal remuneration, leading to a decline in the risk of poverty among the employees in the range of 16 to 64 years. Last year, this percentage decreased to 9.7 per cent at 11.4% in 2016.

Wages in private companies are lagging behind those in the public sector, it is clear from the data of the Social Ministry.

Because of the increase in salaries in the administration, education and healthcare in the public sector, the average salary for the first three months of this year reached 1569 leva, which was an increase of 17.2 per cent, while in the private lag to BGN 1426 or height with 8.8 per One hundred, the minister said.

In the post-2017 period, the average wage in Bulgaria increased sustainably by over 9% per annum.

In 2017, it was 1037 leva, with the increase compared to the previous year being 9.4 per cent. Over the next two years it increased by 10.5% on an annual basis.

In 2018, the following salary in Bulgaria was 1146 leva and in 2019 BGN 1267. In the public sector, it reaches 1294 leva or a growth of 11, 8 per cent and in the private - 1260 leva or an increase of 10.2 per cent.

It continues to increase in 2020, despite the pandemic caused by coronavirus, also show the data of the Social Ministry, and the average salary increased by 9.5 per cent to 1387 leva. The increase in the public sector is larger - by 11.4 per cent to 1441 leva, while in private growth is 8.7 per cent to 1369 leva.

In the first quarter of this year, the average remuneration raised by 11 per cent, reaching BGN 1462. Regardless of the high salary growths, Bulgaria remains the lowest income in the EU, Minister Donev said.

09.08.2021

OVER 8,000 UNEMPLOYED AND EMPLOYED WILL BE ABLE TO START WORK OR STUDY WITH REDISTRIBUTED FUNDS FROM THE STATE BUDGET

As of today, the Employment Agency through the employment offices offers more financial preferences to employers and registered unemployed under various programs and measures to stimulate employment and / or the acquisition of qualifications or key competencies. Funds from the state budget will be used to finance the employment of more than 5,000 unemployed people from disadvantaged groups on the labor market, as well as the training of at least 2,050 unemployed and 990 employees in micro, small or medium enterprises.

This became possible after, on the proposal of the Employment Agency and with the approval of the National Council for Tripartite Cooperation, the Minister of Labor and Social Policy approved the redistribution of funds for the implementation in 2021 of programs and measures to promote employment included in the approved for this year National Employment Action Plan.

The redistribution redirected BGN 3.5 million from programs and measures to stimulate employment, which due to the epidemic situation did not start on time or in full. The Employment Agency proposed that the formed savings be directed to the forms of employment sought by both employers and the unemployed.

A part of the redistributed funds is directed to the employers who have announced vacancies in the labor offices. The funds will be available if the targeted registered unemployed employers approve a person who is a representative of a target group under a program or measure of the Employment Promotion Act, for which the Labor Office Directorate has free funds for concluding a new contract.

Preferences can be given to employers who employ people with permanent disabilities, young people, mothers with children up to 5 years of age, pre-retirement age, long-term unemployed, etc. These people, in the conditions of increased labor supply, have more difficulties in finding a suitable job.

Through the preferences provided, employers can receive subsidies not only for hiring the unemployed from the above groups, but also for dual training of the unemployed, training for the acquisition of key competencies of employees, as well as for vocational training of the unemployed, necessary for work in the respective enterprise.

The employment offices of the Employment Agency provide various opportunities and a variety of forms of financial support in terms of period, type and amount of subsidies, as the specific parameters of the financial incentives for individual programs and measures are defined in the National Action Plan for 2021 d. The subsidy period varies from 3 to 24 months, and the amount of monthly funds provided for basic remuneration - from BGN 320 to 700, and in most cases funds are provided for additional remuneration and social security contributions at the expense of the employer for each employee. unemployed person under the terms of the respective program or measure.

At the same time, the Employment Agency provides financial preferences to the unemployed, which stimulates their mobility or entrepreneurship.

Each Labor Office Directorate has funds under some of the various programs and measures to promote employment, providing preferences to employers or the unemployed. The current opportunities for applying for them until the exhaustion of the free financial resource are published on the website of the Employment Agency, in the section "Announcements for financing by regions", structured for each of the 9 Directorates "Regional Employment Service" in the sub-sections "Incentives for the unemployed” and “Incentive programs and measures for employers”.

The free funds are also announced on the information board in each Directorate "Labor Office" in the country, where you can get complete information about the possibilities, the order and the conditions for granting preferences for the unemployed or employers.

CONSULTANCY CENTER - BERKOVITSA PRESENTS INFORMATION ABOUT INCENTIVE PROGRAMS AND MEASURES PROVIDED BY THE "LABOR OFFICE" DIRECTORATE - BERKOVITSA

FOR THE MONTH OF AUGUST 2021

For employers

For unemployed people

Interested parties can obtain additional information in the "Labor Office" Directorate - Berkovitsa and on tel. +359 953 88 341.

05.08.2021

BUSINESSES WILL RECEIVE LOANS MORE EASILY

Companies will receive easier financing once the Council of Ministers adopts the Portfolio Guarantee Program to support the liquidity of companies affected by the emergency and the COVID-19 epidemic.

The "recovery program" will provide significant liquidity support to businesses in the country, concentrated in a relatively short period of time.

The guarantee scheme will ensure the provision of a large number of enterprises on favorable terms, on favorable terms, which will largely cover the increased counterparty risk associated with the consequences of COVID-19, the Council of Ministers announced.

The effect of the guarantee is focused on reliefs in the collateral requirements and the shortest possible terms for approval and disbursement of loans.

Commercial banks will be required to transfer the full economic benefits of the guarantee to the final borrowers, by providing unsecured loans, with the exception of personal guarantees, which must be provided by the beneficial owners.

The changes in the Program envisage the loans to be provided with shorter processing terms and with optimized time for approval or refusal.

The decision gives consent to the Bulgarian Development Bank EAD to reallocate part of the funds within the approved budget under the Program for implementation of other measures for overcoming the consequences of COVID-19, assigned for implementation by the Council of Ministers of Bulgarian Development Bank EAD.

The draft decision will contribute to the effective implementation of the programs assigned to BDB AD to overcome the negative consequences of the COVID-19 pandemic.

04.08.2021

GREEN TECHNOLOGIES AND DIGITALISATION ARE PREFERRED SECTORS FOR INVESTEU FUNDING

After a market research among financial institutions, conducted by the Bulgarian Development Bank, it was found that the preferred sectors for financing under the InvestEU program are several: application of green technologies, environmental management of resources, water and waste, improvement of logistics and communication systems , introduction of new technologies, support for vulnerable groups such as startups and companies of women entrepreneurs.

The study takes into account market demand and helps identify potential financial intermediaries to partner with BDB. On June 30, 2021, the Bulgarian Development Bank officially declared to the EC a desire to attract additional funds for business recovery and development through the InvestEU program. The total resource that the bank can mobilize with the support of the EU and the participation of the financial sector is approximately BGN 1.7 billion.

The participants in the study stated that they were interested in a standard portfolio guarantee from BDB with opportunities for various risk coverage. According to them, the provision of such an instrument will enable them to finance riskier and more vulnerable final borrowers. Additional benefits for business will be lower interest rates and lower collateral requirements.

In terms of maximum funding, commercial banks report between € 7.5 million and € 15 million for the Sustainable Infrastructure component and up to € 7.5 million for the SME component. The acceptable terms of the loans are up to 180 and up to 120 months, respectively, and the period for generating a new portfolio - until 2027. The final confirmation of the inclusion of BDB in the InvestEU program is expected in October.

Аbout InvestEU

The InvestEU program will be implemented for the period 2021-2027 as the EU's main instrument for investing in economic recovery, environmental progress and employment in Europe. It is one of the tools to support growth after the Kovid crisis and to achieve the EU's goals of building a green, digital and sustainable European economy.

03.08.2021

THE UNEMPLOYED ARE RISING

The trend of the newly registered unemployed in the whole country, starting from the end of June, is more than the number of those who started working. This is shown by the latest data from the specialized monitoring of the labor market due to Covid-19 of the National Statistical Institute and the Employment Agency.

For the week from July 25 to August 1, there are nearly 3,900 people registered in the labor offices, and 3,600 people who have started working.

The latest data from the labor market monitoring for the period July 25 - August 1 show that most are newly registered in the labor offices in the districts of Vratsa, Plovdiv, Blagoevgrad, Stara Zagora, Haskovo, Yambol.

In 13 districts of the country there is a predominance of people without a livelihood over those employed.

The data show that from the end of 2020 to August 1, 2021, the newly registered unemployed in the country are 168,000 people. And the number of people who came to work through the employment offices is 149,000.