14.10.2020
BGN 42 million additionally from the Fund of Funds for the companies affected by the Covid crisis
BGN 42 million additional anti-crisis resource from the Fund of Funds is already on the market. The funds are intended for liquid support of small and medium-sized enterprises affected by the COVID crisis. They will reach them through three private equity funds on easy terms, without the need to raise private capital outside the participation of the fund manager. The Acceleration and Initial Financing Funds Innovation Capital Fund and Vitosha Venture Partners - Fund I received an additional BGN 10.4 million and BGN 13.6 million, respectively. The available capital of each of them increased to BGN 41 million, respectively BGN 50.7 million. The two funds invest up to BGN 100,000 in companies in the acceleration phase and up to BGN 2 million in companies in the initial stage of development. The Morningside Hill Venture Capital Fund added an additional BGN 18 million to its investment resource and now has a total of BGN 75.3 million. It invests up to BGN 7 million in start-ups at an early stage of development, as well as in advanced companies with high risk profile. An agreement is to be signed with the fourth financial intermediary - New Vision 3, for the fund of which an additional BGN 14.3 million is provided.
13.10.2020
An important term under measure 60/40 expires
The Employment Agency publishes information on employers wishing to receive funds for the period before October 1, 2020 under the second design of measure 60/40.
A statement on the Agency's website states that employers who wish to receive funds for the period before 1.10.2020 and meet the conditions of the decree of July 3 this year (the second design of the measure 60/40) may submit an application and the documents required to it until 17:00 on 15.10.2020.
The Employment Agency reminds the already approved employers under the second design of the measure 60/40 that the payment of the funds is made on the basis of a submitted current list of employees for the previous month and a Letter-declaration for monthly reporting. The deadline for submitting these documents is October 30, 2020.
The Employment Agency draws attention to the fact that employers must comply with the set deadlines for application (15.10.2020) and for monthly reporting (30.10.2020), as the documents submitted after these dates are not subject to verification and evaluation by the commissions in Directorates "Labor Office".
The documents can be submitted electronically through the Secure Electronic Service System, signed with a qualified electronic signature, or through a licensed postal operator, and if it is impossible to use these two methods - by visiting the labor office.
Regardless of the method of sending, the documents are submitted to the Directorate "Labor Office", serving the territory of the place of work of employees, or to the labor office, where the employer is approved.
The updated Procedure for application of employers under the Resolution of the Council of Ministers 151/2020 and other detailed information for application and monthly reporting of employers is published on the website of the Employment Agency, in the section "Payment of compensation for maintaining employment".
09.10.2020
The working poor are the most numerous in Romania
"Work does not save you from poverty, ”Adevarul” wrote in a headline today, citing a survey that shows that Romania ranks first in the EU in the number of workers at risk of poverty.
In Romania, the share of workers at risk of poverty was 15.7 percent in 2019, while the EU average in this regard is 8.9 percent, the publication writes, publishing an infographic of a project of the Friedrich Ebert Foundation entitled "Social Observer".
Although the situation in Romania has improved since 2015, the country continues to register the largest share of workers at risk of poverty in the EU, the survey shows. In 2015, 18.8 percent of workers was at risk of poverty in Romania.
On the other hand, Romania ranks second in the EU in terms of productivity growth after Ireland, notes “Adevarul”. Since 2010, the productivity growth rate has been 42.6 percent.
The idea that work provides you with prosperity and the poor are those who do not want to work is the least true of Romania from all over Europe.
All this is happening, although in recent years the productivity of workers in Romania has increased significantly, the authors of the infographic comment.
09.10.2020
Over 21 thousand small companies are supported by nearly BGN 173 million
Under the procedure "Support of micro and small enterprises for overcoming the economic consequences of the COVID-19 pandemic" the review of all project proposals was completed and payments in the amount of BGN 172,672,262.70 were ordered.
All project proposals submitted within a total of twenty-eight evaluation sessions (over 27 thousand companies) of the procedure were evaluated, and 21,173 companies were approved for funding, with which grant contracts were concluded from BGN 3,000 to 10,000, announced by the Ministry of Economy.
Due to the huge public interest in the procedure, as well as in view of the need to provide much-needed funds for liquidity of micro and small enterprises affected by the spread of the COVID-19 pandemic, the Managing Authority of the Operational Program Innovation and Competitiveness took the necessary actions to amend the Conditions for application under the procedure.
This will make it possible for applicants to re-request documents under the procedure for support of micro and small enterprises.
The budget of the procedure will be increased from BGN 173 million to BGN 225 million as the additional BGN 52 million are provided under the anti-crisis measures implemented by the Ministry of Economy in support of the liquidity of micro, small and medium enterprises (SMEs) affected by the emergency and the COVID-19 epidemic.
The procedure for re-examination of project proposals, which are currently found not to meet the Conditions for application under the procedure will start in October and notifications for elimination of irregularities will be sent only through the applicant's profile in UMIS 2020.
09.10.2020
IN WHICH SECTORS ARE WORKERS LOOKING FOR
In the next two years, employment is expected to grow, after which we expect two years of decline, according to a forecast by the Ministry of Labor and Social Policy
In the medium term, employment growth is expected mainly in activities related to education - growth of 204,000 jobs (9.6 percent), manufacturing - up to 635,000 jobs, human health - 180,000 jobs, construction - 247,000 and real estate operations - 18.8 thousand workers. This was announced by the Minister of Social Affairs, Mrs. Denitsa Sacheva.
In the next two years, employment growth is expected by economic activities, after which we expect a two-year decline, the minister said.
According to her, the main contribution to the reduction will have services such as those in the sector of trade, repair of cars and motorcycles, where a decline of 8.2 percent is expected - to 475,000 employees by 2024, followed by the hotel and restaurant sectors, where the number of employees is expected to decrease by 6.4 percent or nominally 154,000 jobs, in the mining industry employment is expected to decrease by 17.9 percent to 23,000 jobs in the production and distribution of electricity and heat and gaseous fuels - a decline to 36,000 jobs (6.7 percent).
The forecast for the demand for labor by educational degrees for the period 2020-2024 shows that the lowest skilled workers are expected to have relatively weak dynamics in the need for such human resources by employers, the minister said.
The projected declines in labor demand in certain sectors can be offset by growth in others, Sacheva added, noting that an increase in the number of low-skilled positions is mainly expected in the manufacturing, construction, human health and healthcare sectors. Real Estate.
At the same time, the decline in demand for such people will be characterized by sectors such as trade, mining, hotels and restaurants, water supply, sewerage, administrative activities and others.
The needs of people with secondary education are expected to shrink in the medium term and this is mainly due to the sectors of trade, hotels and restaurants, mining, administrative activities, production and distribution of electricity, heat and gaseous fuels. The minister said these declines could not be offset by expected growth in other sectors.
For the group with higher education, growth in labor demand is expected in the medium term, mainly in education, public administration, humanitarian healthcare, manufacturing, culture, the minister said, adding that this increase is accompanied by the expected lower number of positions for people with higher education.
08.10.2020
BRUSSELS INTRODUCES NEW EUROPEAN RULES FOR COLLECTIVE FUNDING OF SMALL BUSINESSES
The European Parliament adopted rules on 5 October that facilitate EU collective funding platforms linking start-ups and investors. The rules aim to make it easier to operate across the single market on platforms that enable investors to provide capital to companies.
The legislation expands the access of start-ups and small companies to potential investors and provides investors with a greater choice of projects and better protection. Collective funding platforms operating in more than one EU country will have to comply with a single set of basic requirements instead of different rules for each country. The rules will apply to providers of collective funding services who raise up to 5m euros per project per year.
What is collective funding?
Start-ups and innovative companies often have difficulty obtaining financing in traditional ways such as bank loans. Collective funding service providers allow such companies to connect and raise funds from many small investors. Fundraising is usually done through digital platforms.
Existing national rules on collective funding are not the same and legal uncertainty is an obstacle to investing in projects in other countries. This also limits opportunities for companies that want to attract investment, especially if they are funding in smaller markets.
Finding funding from small businesses and people with innovative ideas will now be much easier. The adoption of the new rules will facilitate collective funding, the so-called crowdfunding, in the EU. This type of funding is a way to raise funds for projects and businesses. It allows a large number of people to raise money through online platforms and is most often used by start-ups or growing companies as a way to access alternative means. The regulation harmonizes the rules for such platforms in the EU, which will ensure transparency, legal protection and low costs. If a start-up entrepreneur has not yet started his business, he will soon be able to register in any collective financing platform in Europe and seek funds from consumers, who may be the most ordinary citizens looking for a meaningful investment in their savings. Once the amount has been collected and the business has started, investors can receive, depending on the conditions of the platform, a percentage of the business, the funds they have invested plus interest, or a product produced. This model works effectively in the United States.
How the new rules protect investors
One of the major risks of collective funding is that investors' decisions are not driven by data, but are influenced by emotions. Bankruptcy of small companies and delays in the delivery of goods are among the problems that investors fail to anticipate.
In addition to monetary resources, a successful collective funding campaign can highlight the potential and public confidence in the business, which will make it easier to find additional funding from other financial sources that will accept the project as less risky. Businesses often start successfully after such a campaign because they have already garnered popularity and support from potential customers during the fundraising campaign. There are a number of types of collective funding. The best known are collective funding through partner lending, equity and compensation, most often in the form of a product or service voucher when they are ready.
The new EU rules require collective funding platforms to provide clear information on the potential financial risks for each project. Investors must have access to an investment prospectus for projects prepared by the project organizer or the platform.
The new rules for collective funding service providers will apply one year after their publication in the Official Journal of the EU.
06.10.2020
They give money to companies under two new support measures
By the end of this month, two new business support procedures are expected to be announced due to the coronavirus crisis under the Operational Program "Innovation and Competitiveness" from its available budget.
This was announced by Iliana Ilieva - Director General and Head of the Managing Authority of the Operational Program "Innovation and Competitiveness" during an online forum dedicated to financial measures to support business, set in the conditions of COVID-19. The two procedures have a budget of BGN 78 million, BTA reports.
The criteria and methodology for evaluation under the two new procedures were discussed at a meeting of the Program Monitoring Committee on 17 September. The full package of documents under the two public discussion procedures is expected to be announced by the end of this week, followed by their official announcement for application. Work is also underway to amend the EU Funds Management Act, which will be able to open the procedure for simplified rules for evaluation and application for shortened deadlines.
The first procedure is to provide operating funds for small businesses with a turnover in 2019 of at least BGN 500,000, as the parameters are to be submitted for public discussion and may change if the proposals do not contradict the regulations and legislation.
Eligible for the procedure will be small enterprises with at least two completed financial years, with a turnover of at least BGN 500,000 in 2019. The funds that will be eligible are to overcome the shortage of funds or lack of liquidity caused by the coronavirus. The costs will be for working capital and to cover current needs, costs for raw materials, fuels, labor, wages and more. The indicative announcement of the procedure is at the end of this month, and this will depend on how quickly the change of the relevant law will be made. There is an assurance from the EC that the temporary framework under which this procedure is expected to start - by the end of the month, will be extended either until mid-2021 or until the end of next year. This will ensure that the funds can be paid to all companies in need also in a short time, the expert said.
The other procedure is to provide support to small and medium-sized enterprises for reorganization and adaptation of jobs and / or changes in business processes and models in the context of COVID-19. All enterprises - micro, small and medium - sized will be eligible here, as the envisaged support regime is minimal aid, and the enterprises must have one completed financial year - 2019, and have carried out economic activity in the same year.
There is no set minimum turnover. The activities that will be supported are related to the creation of unsafe working conditions and to the adaptation of work in the conditions of COVID-19. Thus, costs for fixed and non-current assets will be eligible, including light current construction and installation repairs for adaptation of work premises and for costs for materials and consumables for collective protective equipment for protection, sanitation and disinfection, reorganization and adaptation of work processes, such as this includes digitization.
In connection with the expected to reach the business within the next month or two funds from the EC through REACT-EU, Ms. Iliana Ilieva announced that it is planned to announce two measures with a total budget of approximately BGN 400 million.
The first is for recovery and growth, and eligible applicants will be all SMEs from all sectors with three completed financial years, the last being 2019. Activities related to productive investments are eligible to overcome the difficulties associated with old technologies, high costs and low quality of products or services.
Eligible costs will be to finance productive investments and working capital funds will be provided, and these funds will probably be limited to some amount, as the purpose of this procedure is to emphasize investment costs.
The other procedure will be for digital and "green" innovations, as it is eligible for all SMEs from all sectors that have three completed financial years and again the last is 2019. Eligible activities will be: reconfiguration of business processes and models, including through digitalisation, the use of new alternative materials, the improvement of waste management, the improvement of the characteristics of products and services from the point of view of the circular economy. Eligible costs are for financing fixed assets and services.
An additional measure, which is outside the Operational Program "Innovation and Competitiveness", but in support of SMEs, is through the "recycled" funds under the initiative "JEREMY". The expert reminded that with these funds a new debt instrument was created, which is managed by the European Investment Fund, and under an agreement between the Ministry of Economy and the European Investment Fund, a guarantee instrument is implemented to protect credit risk in debt financing in the form of letters of credit, bank guarantees, factoring and other short-term credit operations in support of the commercial activity of SMEs and medium-sized enterprises.
Under the instrument, the total amount of the guarantee, which is covered by the European Investment Fund, is BGN 160 million, as the possibility for the total portfolio of this guarantee instrument is BGN 800 million, and in case of great interest - it can increase to BGN 1.2 billion. leva. The maximum loan amount for the final recipients is up to EUR 3 million for working capital and multi-purpose needs under facilitated conditions.
The amount of the guarantee, which is covered per final recipient, is 80 percent, and the period in which companies will be able to take advantage of this type of guarantee instrument and receive loans is 36 months. The maximum loan repayment period is no more than five years. So far, three banks have expressed interest, the expert said, adding that they will soon sign an agreement with the European Investment Fund and start providing loans. The EIF also assured interest from two other banks.
05.10.2020
They extend the measure 60/40 until the end of the year
The National Council for Tripartite Cooperation (NCTC) held an extraordinary online meeting convened by Deputy Prime Minister for Economic and Demographic Policy and Minister of Tourism Mariana Nikolova.
The Government and the social partners discussed a draft Decree amending Decree № 151 of 2020 (continuation of measure 60/40).
The proposed changes provide for:
- extension of the deadline for implementation of the measure from 1 October to 31 December 2020;
- application of the relaxed conditions defined for the sector "Hotels and restaurants" and in the sector "Other passenger land transport, not elsewhere classified" - from the Classification of Economic Activities;
- specifying the method for determining the means for maintaining the employment of employees by calculating the average daily insurance income;
- the employer, who has received funds for maintaining employment, to pay the employees remuneration in the amount not less than the amount of the insurance income for August 2020;
- differentiation of employers on the basis of their registration before or after September 2019 in terms of calculating the reduction of sales revenue by not less than 20 percent;
- regulation of a procedure for collection of non-refundable funds by the employers by the order of art. 110 of the Social Security Code.
The necessary financial resources in the amount of about BGN 750 million for the implementation of the changes will be provided by the Unemployment Fund of the state social insurance. The effect of the extension of the measure is expected to be reflected in the preservation of about 200 thousand jobs. The changes will take effect on October 1, 2020, and the funds for maintaining employment will be paid after the respective notification by the European Commission.
30.09.2020
The application for building children's playgrounds in the workplace has started
Policies to support the family and women and to achieve a balance between personal and professional life are among the priorities of the Ministry of Labor and Social Policy. A step in this direction is the "Children's Corners" procedure, under which, as of today, private employers and executive and local authorities can submit projects for the creation of children's corners in the workplace.
BGN 15 million will be allocated to the companies for the construction of children's playgrounds under the Operational Program "Human Resources Development" (OPHRD). The purpose of the operation is to increase the opportunities for better reconciliation of personal and professional life of employees.
Employers can apply for the construction of children's playgrounds in companies from today to mid-December 2020. About 200 companies in Bulgaria will be able to make children's playgrounds with the help of the state, according to the open procedure of the Ministry of Labor and Social Policy. This way, parents will not have to worry about who will look after their children.
The money will be given by the state for the reconstruction of the premises and their equipment with everything necessary for the little ones, as well as for the salary of the staff who will take care of the children.
In the created children's corners the children of the employees will receive hourly or all-day services. Each playground must provide the necessary care environment for at least 15 children. Unemployed persons registered with the Labor Offices will be hired as babysitters, who will undergo training if necessary. The projects will cover the remuneration of babysitters for a period of up to 12 months. The minimum amount of financial support from OPHRD for the creation of a children's playground at the workplace is BGN 50,000, and the maximum - BGN 150,000 depending on the number of children who will attend the study hall. However, the goal is not to completely replace the kindergarten, but to provide hourly care. This is a good model in which, if it is necessary to return a child from a nursery or kindergarten earlier, he can be engaged there.
30.09.2020
Financial support for people with disabilities will be provided without an individual needs assessment
Monthly financial support for people with disabilities to be granted without additional individual needs assessment. This is provided by changes in the Law on People with Disabilities, which are published for public discussion until October 28, 2020. The changes were developed by a working group at the Ministry of Labor and Social Policy with the participation of all stakeholders. With the new texts, it is proposed to drop the commitment to fill in a self-assessment form, which creates serious difficulties for individuals.
The amendments will shorten the deadlines for receiving support and individuals will be able to exercise their rights more quickly. The administrative burden will also be reduced. People with disabilities will receive the financial support they need by submitting only one application, accompanied by a medical document, to the Social Assistance Directorate at the current address. The granting of targeted assistance for spa treatment and/or rehabilitation services and for renting municipal housing will also not require an individual needs assessment and filling in a self-assessment form.
The preparation of an individual needs assessment shall be maintained in accordance with the established procedure when applying for targeted assistance for the purchase of a personal motor vehicle and adaptation of housing, as well as for establishing the need for personal assistance, social services or other support in the Law on People with Disabilities.
The amendments introduce a clear regulation of the mechanism for switching the provision and financing of aids, devices, equipment and medical devices for people with disabilities to the health care system from January 1, 2021 in response to long-standing requests of people with disabilities for such a change. A longer time horizon is also provided for the preparation of the institutionalization of the State Agency for People with Disabilities at the Council of Ministers. By the end of 2021, all necessary actions will be taken to conduct a thorough analysis in order to introduce precise regulations regarding the structure, activities and powers of the new structure in support of people with disabilities.
The draft Law on Amendments to the Law on People with Disabilities was published on the Portal for Public Consultations of the Ministry and on the website of the Ministry of Labor and Social Policy in the period 29.09.2020 - 28.10.2020 inclusive. It will also be considered at a meeting of the National Council for People with Disabilities.
