22.02.2021
A new measure in support of small companies in our country has been opened
Operational Program "Innovation and Competitiveness" announced a procedure for selection of projects BG16RFOP002-2.089 "Support for small businesses with a turnover of over BGN 500,000 to overcome the economic consequences of the COVID-19 pandemic".
The aim is to help overcome the economic consequences of the pandemic. The total amount of the grant under the procedure is more than BGN 78 million.
The new procedure in support of small business will allow only projects of applicants who were registered before January 1, 2019, worked at least 2 years before the pandemic and have at least two completed financial years before the announcement of the procedure.
The new measure is open today for application in the information system for management and monitoring of the structural instruments of the European Union in Bulgaria. The deadline for submission of proposals expires on March 15, 2021. The submission of projects is done entirely electronically.
The financial support is from the European Regional Development Fund and also includes nearly BGN 12 million in national co-financing.
More than BGN 700 million, which are part of the anti-crisis package implemented by the Ministry of Economy, have already reached Bulgarian companies. The money is under the procedures for micro and small enterprises, for the transport sector, for small and medium enterprises from the tourism sector, as well as under the joint procedure with the National Revenue Agency, under which the disbursement of funds continues.
20.02.2021
How many unemployed people are fighting for a job
8 unemployed are fighting for 1 job. This shows an analysis of the Institute for Market Economics.
The Institute for Market Economics has published a map with data on the ratio between the number of unemployed and the number of vacancies as of January 31, 2021. The indicator is important because it captures the degree of competition in local labor markets, and is sensitive to both main factors - the supply of jobs in employment offices and the demand from the registered unemployed.
It should be noted that the data from the labor offices are used here, which excludes the supply of jobs in online platforms and direct negotiation, which play an increasing role, especially in the economically developed parts of the country.
A total of 8 unemployed people in the country are fighting for 1 job. Interestingly, in January 2020 the number is the same, although there are changes in areas. The ratio is deteriorating the most in the districts of Vratsa (from 9 to 15 unemployed for a vacancy) and Haskovo (from 9 to 13 unemployed for a vacancy).
The indicators in the districts of Razgrad (from 22 to 14 unemployed for a vacancy), Pleven (from 15 to 8 unemployed for a vacancy) and Lovech (from 15 to 8 unemployed for a vacancy) are improving.
The highest number of unemployed persons per vacancy is in the districts of Vidin (18), Vratsa, Montana and Targovishte (15 each) and Razgrad (14). The smallest is in the districts of Ruse (4), the Capital (5), Silistra and Kyustendil (6 each).
Data by municipality show even greater differences. While in 64 municipalities the number of unemployed per vacancy is below the national average (8), in 12 municipalities it is over 100. The worst is the ratio in the municipality of Roman (Vratsa) with 534 unemployed per vacancy - in January only one place was discovered there, which is occupied until the end of the month.
It is noteworthy that in almost all of the 12 municipalities with the highest number of unemployed persons compared to a vacancy, the number of vacancies is a single digit number. Exceptions are the municipality of Pernik with 210 vacancies and 2019 unemployed persons and the municipality of Hayredin (Vratsa) with 55 vacancies and 525 unemployed persons at the end of January.
19.02.2021
Unemployment will spiral out of control without an expanded scope of measures
Last year, Bulgaria undertook anti-crisis policies worth 6.7 percent of the country's Gross Domestic Product for 2019.
The majority of other countries have spent much more resources. The average European expenditure is 14.3 percent of GDP, which is twice the value in Bulgaria, according to an analysis by economist Lyuboslav Kostov of the Institute for Social and Trade Union Research of CITUB, published on the Confederation's website.
The only country that has spent less than us is Romania (4 percent of GDP), with Portugal, Slovakia and Estonia close to our values. All other countries have much higher values of anti-crisis measures than ours, the analysis notes.
According to Kostov, the data show that the economic policy of the government in our country, although correct and expressed in many specific measures, is much more conservative against the background of the economic policy of other EU member states. This is strange because our country does not have a problem with government debt or a chronic deficit, as do most of these countries, which have spent several times more money as a share of GDP to overcome the effects of the crisis, the economist added.
The general assessment of CITUB is that the most successful measure for maintaining employment and income compensation was 60/40.
Since the beginning of the year, unemployment in Bulgaria, although gradual, has been on the rise, according to the analysis. In view of the unclear term and scope of the governmental measures under Covid-19, the risks of job loss remain, the CITUB said, adding that they therefore insist on the continuation of measures concerning employment and the protection of necessary.
CITUB wants the scope of these measures to be extended to all categories of workers, including non-traditional and non-standard employment, as well as the self-employed.
Otherwise, we risk getting unemployment out of control, with very severe consequences for economic recovery, the analysis said.
CITUB supports the intentions of the EC to refinance the SURE package and considers it appropriate for our country to continue to benefit from the favorable terms of the loan at least until the end of 2021.
19.02.2021
SMALL BUSINESSES WITH THE OPPORTUNITY TO APPLY FOR BGN 50,000 IN AID
The Ministry of Economy is about to announce a procedure for selection of projects "Support for small enterprises with a turnover of over BGN 500,000 to overcome the economic consequences of the COVID-19 pandemic."
The purpose of the procedure is to provide operating capital for Bulgarian small businesses, which realized a turnover of over BGN 500,000 for 2019, to deal with the consequences of the COVID-19 pandemic.
Consultancy Center - Berkovitsa summarizes the preliminary information about the requirements of the procedure.
It is envisaged that the available budget under the procedure will be divided proportionally by sectors of economic activity according to Classifier of economic activities-2008 on the basis of statistical data on the number of small enterprises with a turnover of over BGN 500,000 in each of the sectors.
BGN 50 thousand is the maximum amount of the requested grant for an individual project.
The sectors of economic activity and the respective budget for them will be listed in the Guidelines for applying for the procedure. In case the budget for one of the sectors is not used, the Managing Authority reserves the right to redirect the free resource to those sectors for which the available funding is not enough.
The projects under the procedure should be implemented on the territory of Bulgaria.
Admissibility
1) Applicants who are legal entities or sole traders, registered according to the Commercial Law or the Law on Cooperatives.
2) Applicants who have at least two completed financial years (2018 and 2019) before the date of announcement of the procedure, within which they have carried out business activities;
(In connection with the requirement that the candidates have carried out economic activity in 2018 and 2019, in case the applicant has submitted a Declaration for an enterprise with income and expenses below BGN 500 or without activity for 2018 and/or 2019 to the NSI, it will be considered inadmissible under the procedure.)
(3) Applicants who meet the requirements for a small enterprise under the Small and Medium-sized Enterprises Act and the Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36).
4) Candidates should have realized a turnover for 2019 equal to or exceeding BGN 500,000.
5) Applicants may participate in the project selection procedure and receive a grant if they are not ineligible applicants under the demarcation line with other EU-funded plans and programs.
6) Candidates who have registered for a total of three months, selected by them, in the period from 01.02.2020 to the month preceding the month of application, an arithmetic mean decrease of at least 20% compared to the arithmetic mean turnover for the same three months for 2019.
7) Applicants who, as at 31 December 2019, are not subject to collective insolvency proceedings under national law and have not received rescue or restructuring aid or are no longer subject to collective insolvency proceedings under national law at the time the aid is granted and have not received rescue or restructuring aid.
Ineligible activities are those that were started and physically completed or fully implemented before 01.02.2020, regardless of whether all related payments have been made. Activities necessary to address the shortfall or lack of liquidity resulting from the COVID-19 epidemic are eligible.
The working capital funds provided under the procedure are in the form of a lump sum in the amount of BGN 50,000 and should be used to cover the current operating costs of the candidates: - raw materials and consumables; external services (including overheads) - personnel (including remuneration costs and costs for social security and health contributions at the expense of the employer), the value of which is calculated in the value of the production/service provided.
Ineligible costs include:
The duration of implementation of each project should not exceed 3 months from the date of entry into force of the administrative contract for the provision of grants.
A project selection procedure with one application deadline will apply, with a minimum deadline for submitting project proposals of 20 days from the date of announcing the project selection procedure.
18.02.2021
Cheap loans are granted to companies in the villages
The Fund of Funds opens the procedure for selecting financial intermediaries to manage the new "Rural Finance" instrument. The funds are provided by the Rural Development Program 2014-2020, co-financed by the European Agricultural Fund for Rural Development. The budget of the financial instrument is BGN 38.3 million, divided into three separate items. After the completion of the procedure for selection of intermediaries, low-interest loans will be available to farmers and other businesses in rural areas.
Farmers will be able to use financing up to BGN 2 million, and the right to a loan on easy terms will also have enterprises engaged in non-agricultural activities in rural areas, including production, trade, crafts, all kinds of services such as accounting, utilities, household, repair, veterinary, information, care for the elderly, etc. The money can be used for both investments and working capital.
The Fund of Funds will co-finance two types of low-interest loans: supplementing already received grants for projects (participation of FF up to 50% of the loan amount) and individual loans (participation of FF up to 70% of the loan amount).
The preferential conditions will include lower than market interest rates, easier conditions for application, reduction of collateral requirements, extended grace period, easier access to financial resources of specific target groups (small farms, young farmers). It is expected that the envisaged funds will support at least 130 enterprises engaged in agriculture or processing of agricultural products, as well as carrying out non-agricultural activities in rural areas.
18.02.2021
How to start for free your online store
In 2020, more and more companies moved their business online. According to the latest data, 60% of Bulgarians prefer to shop online. To support small and medium-sized businesses, the Executive Agency for the Promotion of Small and Medium-Sized Enterprises will provide vouchers to 130 Bulgarian companies, through which it is free of charge.
During the first months of anti-epidemic measures, shops and restaurants remained closed. Many producers and traders found themselves in a dead end.
The initiative "Successful together. Grow your business online.”, оrganized jointly by the Executive Agency for Promotion of Small and Medium Enterprises, CloudCart®, DSK Bank and Mastercard®, is driven by the common mission to support entrepreneurs, producers and traders in Bulgaria in the crisis economic situation.
An online platform allows small and medium-sized businesses to create their own online store in just a few steps. 130 manufacturers and traders will have access to this platform completely free of charge.
Applicants can submit their documents for participation on the agency's website. Requirements - to fill in several declarations and have no public obligations.
Currently, 15 companies have received approval to create their own online store for free. To convince candidates to participate, experts use data on the large growth of online sales.
"60% of Bulgarians regularly shop online. At least once each of us has touched a purchase online," said Boyko Takov, a representative of the Executive Agency for the Promotion of Small and Medium-Sized Enterprises.
According to the latest data on trade in Bulgaria, fashion items and accessories are most often bought online in Bulgaria, followed by sporting goods, baby and children's items and finally electronic devices. On average, each user spent between BGN 500 and BGN 1,000 in 2020.
Documents for participation in the "Successful Together" campaign will be available until March 1, 2021.
17.02.2021
A new measure to compensate the business is being prepared
The Ministry of Economy is preparing a new procedure with the remaining funds from REACT-EU, which will compensate for the losses of micro, small and medium enterprises. It is in its infancy and is in discussion with business.
The money from REACT-EU under OPIC has a certain limit of BGN 211 million and includes both the funds under the measure for the "big little ones" and the resources for the new procedure. In the process of working on the forthcoming new measure, all application conditions will be cleared.
"With it, we hope to compensate not completely closed sectors, but those that have registered a certain decline," explained Economy Minister Lachezar Borisov.
The social measures against COVID-19 will be used until September, Borissov reminded. The number of appraisers in the National Revenue Agency has been tripled so that all applications can be paid as soon as possible.
Meanwhile, the Bulgarian Development Bank (BDB) said it would send a proposal to the Minister of Economy by the end of the week to increase funds for interest-free loans to individuals.
16.02.2021
3400 companies have received working capital support for BGN 38 million.
Over 3,400 traders have so far received support with working capital through the National Revenue Agency in the total amount of BGN 38.1 million.
Under this scheme, traders affected by anti-epidemic measures imposed by 4 orders of the Minister of Health receive 20% or 10% of their turnover for the respective periods of 2019 or 2020, reminded by the NRA.
So far, most of the supported businesses are restaurants and bars. However, a significant number of applicants (nearly 60%) have made inaccuracies in their project proposals. The most common deviations are in the period for which support is requested, as well as in the turnover indicated by the companies for the previous year, according to the NRA data. There are also candidates whose sites have never been closed by orders of the Minister of Health, as well as those who declare turnover for 2 months, which is greater than their total annual turnover for previous periods. Approximately 50% of the applications for support amounting to 10% of the turnover of closed sites in malls or shopping centers turn out to refer to sites that are not on the territory of malls or shopping centers, which is a mandatory requirement for support, show the observations of the revenue agency.
This week, the NRA management has tripled the number of revenue agency experts working on the program to further speed up communication with applicants. Inaccuracies are clarified in this communication and the candidates correct the submitted data. Another change that accelerates the granting of aid is the shortening of the 7-day period after a response from the applicant to 1 day, added the NRA.
"Three times more experts are engaged in the NRA to quickly provide financial assistance. But there are a number of cases of inaccuracies. Instead of refusing the requested financial assistance, in such cases we encourage the necessary corrections by individuals, because everyone in the NRA understands that in a pandemic business needs support," said the executive director of the Revenue Agency Galya Dimitrova.
15.02.2021
MEASURES FOR OPERATION AT LOW TEMPERATURES
Employers should take special measures to protect the lives and health of workers, and winter temperatures impose additional requirements on employers. They are specified in the Ordinance on the minimum requirements for the microclimate of workplaces.
Organizational and/or technical measures may be taken to minimize the risk to the health and life of workers. For example, changing working hours in order to avoid working in the coldest hours of the day or introducing more frequent breaks. Other measures may include changing the type of work by assigning one that is safer under certain conditions, providing appropriate work clothing and personal protective equipment or collective protection equipment (in this case those that protect against hypothermia and frostbite). Premises with conditions for restoring the body's heat balance, hot drinks, etc. can also be provided.
It is obligatory to have surveillance or means of communication with the workers in the open at isolated workplaces, as well as first aid and conditions for appropriate transportation in case of sudden deterioration of health to a medical institution.
The Ordinance on the minimum requirements for the microclimate also describes the optimal and permissible minimum and maximum values of air temperature in the cold and warm period of the year for light, medium and heavy physical work indoors. At low temperatures, the optimal values vary between 16 and 23 degrees, and the allowable - from 13 to 25 degrees, and lower temperatures are allowed, respectively, during heavy physical work.
Outdoor work must be stopped in dangerously low or high temperatures, thunderstorms, heavy rainfall, strong winds and thick fog, defined by the code "orange" or "red" by the National Institute of Meteorology and Hydrology, if they pose a threat to life and the health of workers and the safe performance of work.
Exceptionally, the work is not suspended when it comes to work in connection with the country's defense. Work related to the prevention of disasters and accidents and to control and overcome the consequences thereof are not suspended. Also for carrying out urgent socially necessary works on restoration of water supply, electricity supply, heating, sewerage, transport and communication and rendering medical assistance.
If they do not comply with these requirements, the inspectors from the General Labor Inspectorate may carry out an inspection and impose a fine in the amount of BGN 1,500 to 15,000. In case of repeated violation, the sanction jumps from BGN 20,000 to 30,000.
Reference:
Ordinance № RD-07-3 of 18.07.2014 on the minimum requirements for the microclimate of workplaces.
15.02.2021
More and more Bulgarians have been out of work for more than a year
In the fourth quarter of 2020 the number of unemployed persons was 173.1 thousand, of which 95.7 thousand (55.3%) were men and 77.4 thousand (44.7%) were women. This is shown by the latest NSI data.
The unemployment rate is 5.2%, respectively 5.4% for men and 5.1% for women. Compared to the fourth quarter of 2019, the unemployment rate increased by 1.1 percentage points, with the increase for men and women being 1.0 and 1.3 percentage points, respectively.
Of all unemployed persons 13.9% have higher education, 51.4% - with secondary education, and 34.7% - with primary or lower education. Unemployment rates by level of education are 2.3% for higher education, 4.8% for secondary education and 15.1% for primary and lower education, respectively.
Unemployment growth between the fourth quarter of 2019 and the fourth quarter of 2020 is largely due to the increased number of unemployed with a duration of unemployment of up to one year. During this period it increased by 23.1 thousand and reached 88.0 thousand. In the fourth quarter of 2020, the long-term unemployed (for one or more years) were 85.1 thousand, or 49.2% of all unemployed persons.
The long-term unemployment rate increased by 0.4 percentage points to 2.6%, with the increase being almost the same for men and women.
Of the total number of unemployed, 27.4 thousand, or 15.8%, are looking for their first job.
In the fourth quarter of 2020 the unemployment rate for the age group 15 - 29 years was 9.3%, as compared to the same quarter of 2019 it was higher by 2.6 percentage points. The unemployment rate for men (15 - 29 years of age) increased by 2.4 percentage points, and for women - by 3.0 percentage points, reaching 9.6 and 8.9%, respectively.
Economic inactivity
In the fourth quarter of 2020 the total number of economically inactive persons (persons outside the labor force) aged 15 and over was 2 613.0 thousand, of which 1 044.2 thousand (40.0%) were men and 1 568.8 thousand. %) - women. The economically inactive persons aged 15 - 64 are 1 202.8 thousand, or 27.3% of the population in the same age group.
The economic activity rate for the population aged 15-64 is 72.7%, as compared to the fourth quarter of 2019 it decreased by 0.3 percentage points.
In the fourth quarter of 2020 the total number of employed persons aged 15 and over was 3 126.9 thousand, of which 1 692.3 thousand men and 1 434.5 thousand women. Compared to the fourth quarter of 2019, the number of employees decreased by 3.0%. The relative share of employed persons in the population aged 15 and over is 52.9%, as for men this share is 59.8%, and for women - 46.6%.
In the fourth quarter of 2020, 1,959.2 thousand or 62.7% of the employed worked in the services sector, 963.6 thousand (30.8%) in industry and 204.0 thousand (6.5%) in rural, forestry and fishing economy. Compared to the same quarter of 2019, the number of employees decreased in all economic sectors, but the largest decrease was observed in the services sector - by 74.0 thousand, or by 3.6%.
Of all employees 3.8% (118.6 thousand) are employers, 6.8% (211.9 thousand) - self-employed (excluding employees), 88.9% (2 780.1 thousand) - employees, and 0.5% (16.2 thousand) - unpaid family workers. Of the total number of employees, 2,120.7 thousand (76.3%) work in the private sector and 659.4 thousand (23.7%) in the public sector.
In the fourth quarter of 2020, employment in the different age groups is as follows:
The employed persons aged 15 - 64 years are 3 029.7 thousand.
The employment rate for the population in the same age group was 68.8% (73.4% for men and 64.1% for women).
The employment rate for the population aged 15 - 29 years is 39.0% (43.8% for men and 34.0% for women).
The employment rate for the population aged 20-64 is 73.8%, respectively 78.9% for men and 68.6% for women. Compared to the fourth quarter of 2019, the employment rate (20-64 years of age) decreased by 1.1 percentage points, by 1.0 percentage points for men and by 1.2 percentage points for women.
The employed persons aged 55 - 64 years were 608.5 thousand, or 65.0% of the population in the same age group (71.6% of men and 58.9% of women).
