17.11.2022
THE EC PREDICTS HIGH INFLATION AND STABLE UNEMPLOYMENT FOR BULGARIA
The growth of the Bulgarian economy will reach only 3.1 percent in 2022, slowing down even more to 1.1 percent next year. This is stated by the European Commission in its autumn forecasts, published during the week.
Last year, the economy of our country grew by 7.6 percent after shrinking by 4 percent in the pandemic year 2020.
According to the EC's summer forecasts, published in mid-July, expectations for Bulgaria have improved for the current year (a growth of 2.8 percent was expected in the summer), but the prospects for next year have worsened (a growth of 2.3 in the summer forecasts).
For 2024, the European Commission is betting on a growth rate of our gross domestic product (GDP) of 2.4 percent.
Inflation forecasts in the country point to a rate of 12.8 percent in 2022 and a slowdown to 7.4 percent next year, followed by 3.2 percent in 2024. Inflation expectations are relatively little changed, albeit in the upward direction, compared to the summer forecasts (12.5 percent and 6.8 percent for this year and next year, respectively).
Unemployment in Bulgaria will remain stable, maintaining a level of 5.2 percent in 2022 and 2023 and with a minimal increase to 5.3 percent in 2024 with employment dynamics of 0.4 percent, 0.0 percent and 0.2 percent in the three years covered by the autumn forecasts.
For comparison, the baseline scenario in the forecast of the Bulgarian National Bank (BNB), prepared as of September 30, 2022, foresees a lower growth of Bulgaria's real GDP - a slowdown to 2.8 percent in 2022 and to 0.1 percent in 2023, then accelerating to 3.4 percent in 2024.
Our central bank's estimates for annual inflation foresee a level of 14.9 percent at the end of 2022, 7.6 percent next year and a weakening to 3.4 percent at the end of 2024. The unemployment rate is expected to decline steadily from 4.6 percent in 2022 to 4.2 percent in 2024.
Regarding the financial flows of our country, the European Commission expects in its autumn forecast a budget deficit of 3.4 percent of GDP this year, which will decrease to 2.8 percent and 2.5 percent in the next two years, respectively.
Government debt is projected to decline slightly to 22.5 percent of GDP this year and gradually increase to levels of 23.6 percent and 25.6 percent in 2023 and 2024, respectively. The country's government debt last year was 23.9 percent and 24.5 percent in the pandemic year 2020.
For the current account balance, Brussels forecasts a deficit of 1.2 percent this year, with the negative balance increasing to 3 percent and 3.2 percent in the next two years.
The forecast for total investments in 2022 is also negative - minus 8 percent, but with a positive balance of 5.5 percent and 7 percent in 2023 and 2024, respectively.
16.11.2022
I CAN'T PAY MY LOAN PAYMENTS - WHAT SHOULD I DO
Are you having a hard time paying your monthly loan payments? This can have serious consequences if you don't act on time. Even if you've made a financial mistake, there's a chance you can fix it before it hurts your credit history and your budget for years to come.
First of all - do not despair and do not run away from the problem. There are various ways to improve your situation. Oftentimes, lenders are willing to negotiate a customized payment plan that fits your needs. Your lender may agree to reduce or even pause your payments depending on your situation.
Delay, Consolidation or Refinance?
If you have a one-time difficulty and are facing a late payment, try to make an installment within 30 days of the due date. In many cases, these late payments do not even enter the Central Credit Register, so your credit score will not suffer. When you realize that you won't be able to keep up with payments on time in the future, it's time to take action before you're officially late on your payments.
Consolidating or pooling loans provides an easy and convenient way to reduce your monthly expenses. If you have several loans, it may be a good idea to consolidate them into one. So you pay only one monthly installment, at a more favorable price, on one date, with one interest and principal. Having fewer loans serviced on time increases your credit score and subsequently gives you access to higher amounts and approval.
Refinancing can only be used if you already have a loan from a bank or non-bank institution. In practice, this is the replacement of one credit with another, and the purpose of the new transaction is to improve conditions for the client. This could mean a smaller monthly payment, a lower interest rate, a shorter repayment period and other details that would make it easier to pay off the debt.
Contact your lender
Credit companies are often understanding that financial situations change and can help you avoid a bad credit history. Before making contact, do the following:
- Clarify your problem. Are you experiencing a one-off hardship – such as an emergency car repair that has drained your bank account? Or will you be running out of cash month after month because your income has gone down? In other words - what is the reason for the inability to pay or the delay. Providing a short and clear explanation to your lender can be essential;
- Create a plan. Try to figure out what can help you. Will missing a payment or two get you back on track? When could you resume making normal payments? Or will lower monthly payments for a while help stabilize you financially? It is important to have a plan of action to convince your lender that you will deal with the problem.
If you know exactly what you need, then you are ready to contact your lender - the sooner the better. Don't wait until you're behind on your payments to make contact, as the lender may not be as willing to help you.
Call or go to the location and explain your situation in detail. You can suggest your own plan or ask what payment relief options may be available to you and if you qualify.
Most lenders have a practice of offering assistance to a certain degree depending on the situation. For example, there are skip payment programs that allow you to miss a few payments without penalty, or adjusted payment plans with reduced interest rates.
You should require the terms of any agreement you make to be in writing. This documentation will help you not forget any important detail and also serves as written evidence in case there is any confusion with your lender in the future.
Prioritize your debts
Before tackling the credit debts, check if any of your other debts are not more serious - these are called "priority debts". Priority debts include: rent and mortgage, gas and electricity, council tax and court fines. If you don't deal with your priority debts, you could lose your home or have your energy supply cut off, for example.
The first step is to make a budget. This will help you understand how much you have left each month after paying your main bills and priority debts. The amount you have left over is your “disposable income”. After that, it is important to stick to the set budget and not only exceed it, but even try to save.
Try to be as accurate as possible. Before you budget, find your most recent bank statements, pay stubs, and debit and credit card statements. A budget plan will help you estimate how much disposable income you can use to pay off other non-priority debts.
Optimize living expenses
Add up your income and expenses. Look for ways to reduce costs and increase revenue. The cost of living is the price of the goods and services you consume to achieve a sufficient degree of satisfaction and reach a certain standard of living.
The things you definitely need to keep paying are rent/mortgage, utilities and transportation. Learn how to optimize food and clothing spending. These are feathers that you can probably save some extra money on by making some compromises.
All other expenses are optional, which means you can learn to live without them, at least until you "get on your feet." This includes all "pleasures" such as cable TV, movies, restaurants, phone bills, buying branded goods, expensive hobbies, etc.
Credit card payments
You should try to make at least the minimum payment on your credit card. If you pay less than the minimum payment, the loan company may add fees. This will affect the amount of your debt and your credit score.
If you can afford to make regular payments, set up a direct debit to your credit card account. This means you will automatically make the same installments every month. Keep paying as much as you can.
Keep a copy of your budget. If you need to ask the loan company for lower installments, you can present them with your budget plan. In this way, you will prove that you cannot afford more than what you are offering to pay.
Explain the situation to your lender and ask for a freeze on interest and other charges. You can negotiate a pause in payments on your card – meaning you won't need to pay anything until your situation improves.
If you don't think your financial situation is likely to improve, you might consider transferring your debt to another card that charges less interest - this is called a 'balance transfer'. Another option is to take out a lower interest loan from your credit card.
Compare the cards or loans you can get from different companies. Note whether there will be a fee to move your balance to another card, what interest and fees you'll pay on the new card or loan, and how long each interest-free period is.
Use a loan or new credit card just to pay off the debt you already have. Don't spend more than your current credit card. Avoid taking out a loan that is tied to your home, such as a mortgage. You risk losing your home if you can't get it back.
It is very likely that you will not get a new bank loan if you have a bad credit rating. This can happen if you have already applied for many loans or regularly missed monthly payments. In this case, you may need to resort to the services of a company for quick loans.
If you have doubts about the accuracy of your credit score, you can check whether it was calculated correctly. Verification won't make it worse, but you may be able to correct an error to improve your grade.
16.11.2022
OVER BGN 3.2 MILLION WILL BE DIRECTED TOWARDS EMPLOYMENT OF DISABLED AND PERMANENTLY UNEMPLOYED PEOPLE
Over BGN 3.2 million under the National Employment Action Plan will be redistributed to programs and measures for employment and training of unemployed people with disabilities, long-term unemployed and people of pre-retirement age. This was announced by the press center of the Ministry of Labor and Social Policy.
The Ministry's proposal is supported by the National Council for the Promotion of Employment.
Nearly BGN 1.2 million will be directed to the National Program for employment and training of people with permanent disabilities due to the increased interest of employers. The program provides an opportunity for employment and two-year employment for unemployed people with disabilities.
Funds under the "Retirement Assistance" program, which offers long-term subsidized employment, will be increased by over 820,000 BGN, 700,894 BGN will be directed to incentive measures from the Employment Promotion Act.
The budget for the training and employment program for the long-term unemployed will be increased by nearly BGN 500,000.
For the period January - September 2022, according to programs and measures under the National Employment Action Plan, work has been provided for 23,210 unemployed people, and 9,161 people have been included in training.
At its meeting on October 26, the caretaker government adopted a decree approving additional expenditures under the MLSP budget to guarantee the employment of more than 11,500 unemployed people from disadvantaged groups on the labor market - long-term unemployed, youth up to 29 years old, people with disabilities, with low or without education and qualification, employed under the National Employment Action Plan in 2022, the press service of the cabinet reported. The additional financial resource is in the amount of BGN 48.2 million.
15.11.2022
A GERMAN COMPANY WITH AN INTEREST IN AN OVER 1 BILLION EURO INVESTMENT IN NORTHWESTERN BULGARIA
A German company has expressed interest in an investment of over 1 billion euros in the region of Northwestern Bulgaria. This became clear during a meeting between the Minister of Economy and Industry Nikola Stoyanov and the management of "Profine Energy GmbH". This would be the largest one-time investment made in the history of the Bulgarian economy.
"You can count on the full support of the state to speed up administrative procedures for the realization of investment intentions," emphasized Stoyanov. He presented the opportunities for incentive measures that the investor can take advantage of. "I know that you are already in contact with many German companies that have chosen Bulgaria. I am sure that you will be convinced by them as well - German business feels good in our country and a number of companies are planning new expansions", emphasized Nikola Stoyanov.
The German company is in a very advanced phase of making its investment decision in Bulgaria, it became clear during the meeting. The preparation of a Memorandum, in which Profine Energy will declare interest in the investment in writing, has also started.
Profine Energy GmbH is a joint venture between Profine Group, Germany and Wirth Group, Germany. They have investment interests in the field of electricity generation from renewable energy sources. The incorporation of a subsidiary of the German company under Bulgarian legislation is currently underway. Its purpose is the development and subsequent implementation of photovoltaic plants in Bulgaria, the company's representatives emphasized.
The seriousness of the investment intention was confirmed during the meeting personally by the group's executive director Dr. Peter Mroslik and Markus Wirth, chairman of the board of the Wirth Gruppe.
Last month, Profine Group and Wirth Group founded a joint energy service provider, Profine Energy GmbH, based in Waghäusel, Germany. The "Profine Group", under the brands KBE, KÖMMERLING and TROCAL, manufacture PVC profiles for windows and residential doors, shutter systems and PVC boards. The consolidated turnover of the company is over 900 million euros and the production capacity is approximately 450,000 tons of profiles per year. Profine Group has more than 3,000 employees in 29 sites in 23 countries.
14.11.2022
OLDER WORKERS INCREASINGLY NEEDED IN THE LABOR MARKET
The share of workers over the age of 55 is increasing every year. The demographic replacement rate in Bulgaria is 69 for 2021, which means that for every 100 people who retire, there are 69 who enter working age.
As a result of these processes, it appears that the ability of employers to retain older workers is a key measure to temporarily solve the labor shortage problem. This was said by Svetlana Doncheva - head of the "Center for Project Management" at the Bulgarian Industrial Association, during the final conference of the eDigiStars project in Budapest, BIA reported.
The project is implemented by 19 partners from 8 Danube countries - Austria, Bosnia and Herzegovina, Bulgaria, Czech Republic, Hungary, Romania, Slovenia, Ukraine. The main goal is to develop sustainable ecosystems that successfully transform older workers into self-employed entrepreneurs who offer digital services.
Svetlana Doncheva was invited by the organizers to the discussion panel "A new path for the elderly or employees over 50, self-employed or looking for work and their opportunities on the labor market" to present part of the results of the project "Inspired by experience: More long together - a path to success", which BIA implemented in the period 2019 - 2021.
She told the conference delegates that generational issues are even more relevant and significant in the current situation on the labor market. Project work has seen four, even five generations working together for the first time, and this, in turn, is proving to be a huge challenge for employers who are struggling to successfully manage generational differences in the workplace. The results of a qualitative study carried out by BIA among 809 respondents, representatives of the four main generations in the labor market, have confirmed the hypothesis that there are significant differences between them in terms of needs, values, motivation, expectations, attitudes, behavioral patterns and attitudes towards labor.
At the same time, the analyzes also confirm another hypothesis of the researchers, namely that employers do not have experience in implementing successful management practices related to the intergenerational approach and the management of generational differences. At the heart of this approach is the understanding that the specifics of different generations must be studied, identified and used to create a working environment that highlights the strengths of each generation, promotes mutual understanding and solidarity between different generations in the interest of the common business aims.
The project "Inspired by experience: Longer together - a path to success" has also taken into account very precisely the needs and characteristics of people over 50 years of age, who are the core group of the eDigiStars project. HR experts at BIA call this Generation T (Traditionalists). In Bulgaria, this generation grew up during the period of consolidation of the socialist regime and the state planned economy. These are people who value the work ethic of the previous time, are not inclined to change their jobs often, they are rather workaholics, supporters of a stricter hierarchy. Education is a high value for traditionalists and it is not true that the elderly do not want to be educated and learn.
The experts who worked on the project recommend that employers emphasize on-the-job training, exchange of experience and cooperation with colleagues, and report that people over 50 years of age have a harder time understanding the dynamics of the workplace. Changing processes and procedures confuses and stresses them.
"More time is needed to adapt and learn the new. That is why employers must be patient, tolerant and give them enough time to adapt to the new conditions. Naturally, with advancing age, suitable working conditions and the absence of excessive tension in work is becoming more and more important. In this sense, employers should think about more flexible forms of working hours, introduction of more ergonomic working conditions for people at an older age", added Svetlana Doncheva and emphasized that the activities on the eDigiStars project were a natural extension of the results of the "Inspired by Experience" project. The work of the eDigiStars project team, based on the in-depth previous analyses, has helped to create the three tools that play a key role in the learning process of people 50+.
11.11.2022
WHAT IS THE LEGAL INTEREST ON OBLIGATIONS TO THE NATIONAL REVENUE AGENCY?
The legal interest on arrears, which the National Revenue Agency administers, remains at 10 percent until the end of the year. The increase in the basic interest rate from 0% to 0.49%, which the Bulgarian National Bank introduced from October 1, 2022, will not be affected, since the legal interest is calculated twice a year - on January 1 and on July 1 on the relevant year, based on the base interest rate on that date plus 10 percentage points.
11.11.2022
THE NEWLY UNEMPLOYED ARE TWICE AS MANY AS THOSE WHO HAVE STARTED WORK
Newly registered unemployed across the country in the last week of October were twice as many as those who started work through the labor offices. The new unemployed are 4,839, while those employed after registration are 2,407 people.
From the beginning of the year until now, there are just over 213,000 people registered at the Labor Offices, and 142,500 people who have entered work.
In the last monitored week from October 24 to 30, the most newly registered people were in the Plovdiv region - 489 people and in Blagoevgrad - 405, followed by the capital Sofia - 396.
In this period, the largest number of people started working in the capital - 298 people, and in Plovdiv - 193. The data from the monitoring of the labor market indicate that last month the largest number of newly registered persons were in the period from October 3rd to 9th - 8,607 people. At that time, 3,806 people found a living.
10.11.2022
PEOPLE WITH DISABILITIES WILL RECEIVE AIDS UNDER A NEW ORDER
A draft Methodology for assessing the needs of high-tech aids for people with permanent disabilities is proposed by the Ministry of Labor and Social Policy, uploaded for public discussion. These are devices such as the OrCam MyEye device (advanced technology to assist the blind or visually impaired), screen reader software for visually impaired computer users, a portable braille computer or display, a verticalizing electric wheelchair, etc.
It is envisaged that the evaluation and selection of the candidates to use the high-tech means will be done through the social assistance system in the country, and for this purpose, evaluation commissions will be created at the district level to carry out the administrative processes related to ensuring access to the necessary high-tech aids from the moment the support is requested until it is directed to the actual provision. An Advisory Commission for the provision of such funds to the Social Assistance Agency will also be established to provide methodological assistance to the evaluation commissions. The agency should announce the procedure for the selection of the project candidates, containing the necessary information and documents required for the application.
Eligible target groups will be people with permanent disabilities who have declared a need for the provision of high-tech aids (children and adults of working age), regardless of whether they are students, employed, unemployed, economically inactive, in case they have not received financial support to satisfy of a need for the specific aid by an institution operating with public funds.
The assessment is voluntary and will be prepared if the person with a permanent disability requests it.
The assessment will be carried out by categories (codes) described in the "Activities and Participation" and "Environmental Factors" sections of the International Classification of Functioning, Disability and Health. An innovative way of measuring the need and usefulness of providing a given high-tech aid is introduced by calculating the Coefficient of Limited Functionality and Workability and the Coefficient of Utility of the corresponding high-tech aid, in accordance with generally recognized tools and methods in the field.
People in need of an aid must submit an application form for assessment to the Regional Directorate of Social Assistance in the relevant area at the current address of the person with a permanent disability. Documents may be submitted in person, by certified mail (return receipt requested) via a licensed postal operator, or electronically.
The assessment request is prepared at the request of the person with a permanent disability or a person authorized by him; the parent (adoptive), guardian or custodian of the person with a permanent disability; a person entrusted with the care of a child with a disability pursuant to Art. 26 of the Child Protection Act; the head of the social or integrated health and social service for residential care that uses a child with a permanent disability.
A TEMC or NEMC decision, a written assignment of a qualified medical specialist or a person with appropriate professional qualifications, which defines the specific design characteristics of the product and its intended use by a specific patient, is attached to the evaluation application.
09.11.2022
WHAT HAPPENS TO UNUSED LEAVE UNTIL THE END OF THE YEAR?
How much of our paid annual leave can we carry over to next year and can we lose some unused days this year?
The basic rule is that paid annual leave is used in the calendar year for which it is claimed. However, he can postpone a part of it, but he cannot postpone its use indefinitely. The reason is that there is a two-year statute of limitations for vacations. This means that if you haven't used your leave two years after the year it was for, you lose those days.
The statute of limitations begins to run from the following year for which the leave is taken. For example, until the end of 2022, the last days you have left from 2020 can be used. The statute of limitations stops for the period in which the worker or employee uses another type of leave - for pregnancy and childbirth, for childcare, etc.
Workers and employees who have not reached the age of 18, and mothers with children up to the age of 7, use their vacation in the summer, and at their request - at other times of the year, except in cases where the employer has the right to provide them with paid annual leave leave without their consent.
The employer is obliged to grant paid annual leave to the worker or employee until the end of the relevant calendar year, unless its use is postponed in accordance with Art. 176 (art. 173, para. 5, ex. 2 LC). In case of postponement under Art. 176 LC, the worker or employee is guaranteed the use of not less than half of the paid annual leave due to him for the calendar year (Art. 173, para. 5, ex. 3 LC).
Paid annual leave must be used, it cannot be compensated with monetary compensation, except upon termination of the employment relationship. Upon termination of the employment contract, the employee has the right to monetary compensation for the unused paid annual leave, the right to which has not been extinguished by statute of limitations.
As of 17.07.2015, the obligation for employers to approve a schedule for the use of paid annual leave by December 31 of the previous calendar year has ceased to exist.
For this reason, the provisions regulating the manner and order of use, as well as the postponement of the use of paid annual leave for the next calendar year, have also been amended. The method of using the paid annual leave is regulated in Art. 172 of the Labor Code.
The paid annual leave is used by the employee all at once or in parts, and the law does not determine how many parts the paid annual leave can be used. Therefore, the leave can be divided into parts during use, without a minimum amount limit.
09.11.2022
FINANCIAL SUPPORT FOR PEOPLE WITH DISABILITIES WILL RISE BY 22% IN 2023
"Financial support for 670,000 people with disabilities will increase by 22% in 2023. Its increase is dictated by the caretaker government's decision to raise the value of the official poverty line in the country, which will rise from BGN 413 to BGN 504". This was said by the Deputy Prime Minister and Minister of Labor and Social Policy Lazar Lazarov, who presented the measures taken by the office to support people from vulnerable groups during a parliamentary blitz control.
The specific amount of financial support for different groups of people with disabilities is determined as a percentage of the poverty line for the respective year. For example, for people with more than 90% degree of disability with certain foreign assistance, who receive a social disability pension, it will reach BGN 287.28.
Minister Lazarov emphasized that the caretaker government has also taken a measure to increase the number of people who use targeted subsidies for heating. It is expected that around 310,000 people and families will receive assistance of BGN 623.55, which is BGN 100 more than in the previous winter season. Another 50,000 will additionally receive a one-time aid of BGN 400.
"In order to provide wood at preferential prices for those in need of the state forestry farms, we signed an agreement with the Ministry of Agriculture and the Agency for Social Assistance," recalled Deputy Prime Minister Lazar Lazarov.
He added that the Ministry of Labor and Social Policy has launched the Program for Food and Basic Material Support (2021-2027), thereby providing an opportunity for municipalities to continue providing the "Hot Lunch" service to more than 70,000 people non-stop during the winter months.
Minister Lazarov emphasized that with the submitted draft law to extend the state budget from 2022, the caretaker government guarantees that no reduction of pensions and no social payment will be allowed.
