16.05.2022
NEXTGENERATIONEU: EUROPEAN COMMISSION LAUNCHES INFORMATION CAMPAIGN IN BULGARIA ON THE NATIONAL RECOVERY AND RESILIENCE PLAN
The benefits of the Bulgarian Recovery and Resilience Plan are at the heart of an information campaign launched on 12 May in Bulgaria at the initiative of the European Commission.
The campaign will last one month. The aim is to promote among young Bulgarians the EU Mechanism for Reconstruction and Resilience - NextGenerationEU.
Various visual messages on the Internet and in open spaces in cities will inform citizens about the recovery and sustainability plan and the ways in which Bulgarians can benefit from the projects under the plan.
On April 7, the European Commission gave a positive assessment of Bulgaria's recovery and resilience plan, and on May 3 the Council finally approved it. This is an important step that paves the way for the EU to provide € 6.3 billion in grants under the Recovery and Resilience Mechanism. This funding will support the implementation of the decisive investments and reforms outlined in Bulgaria's recovery and resilience plan so that the country can emerge from the economic crisis caused by the COVID-19 pandemic, stronger and better prepared for the future.
13.05.2022
LOAN FROM A BANK - WHEN IS IT GOOD TO ABSTAIN?
Bank credit seems to be an easy and quick solution to financial problems. People take out loans most often to renovate and furnish their homes, replenish mortgages, consolidate accumulated debts, buy a car, cover current or medical expenses, and even vacation.
However, the use of bank credit has a number of disadvantages. Getting ready-made money usually costs money. Assess whether the product or service is worth the extra costs such as fees and interest. In addition, borrowing can become a bad habit that often leads you to overspend. What are the alternatives?
Rescheduling and deferral
If you have public obligations such as taxes, insurance, customs duties, fines, confiscations, etc., in case of temporary financial difficulties you can request their deferral or rescheduling. The difference between deferral and rescheduling is in the periodicity of payments.
In the case of deferral, the deadline for payment of the entire public debt is postponed, setting a new deadline for its payment. When rescheduling, the obligation is paid in installments - in installments with a certain deadline (maturity), for which a repayment plan is approved.
Own savings
Saving money makes your life easier and gives you financial security in unforeseen situations, and regular contributions to your savings account help you be more responsible for your finances. Having a little more money in your account and seeing it increase over time is certainly better than being in the red every month.
If you have a good reason for urgently needing a large sum of money, resort to your savings. And in case you haven't started saving yet, do it now. Even if you do not have a high salary, put BGN per day in your savings bank and after using the collected money, always start reimbursing the amount again.
Loan from relatives
In a difficult situation, you can borrow money from relatives, friends, colleagues or neighbors. Most people have probably lent or borrowed money from loved ones. The advantage of such a loan is that you usually have to repay exactly as much as you took. Unfortunately, it is not uncommon for a delayed or unpaid loan to lead to a breakup.
Never take out loans that you cannot repay. Assess well who you are asking for help and agree on clear conditions for the return of the money. In addition to frequent loans, your loved ones can help you make your own money. Together, look for options to increase your income, such as extra work, training and more.
Loan from a non-banking institution
Borrowing from non-bank financial institutions is normal nowadays. Unlike bank loans, non-bank loans are usually for small amounts, and the institutions that grant them have grown strongly in recent years. These companies are legal entities that provide quick loans to consumers.
In order to choose a reasonable loan, it is important to carefully review the terms of the contract and to get acquainted with the specifics of repayment and interest on the loan. Ease of obtaining funds does not mean that you can approach this deal irresponsibly. Delays in paying contributions can mean higher obligations for you. In case of such a problem, consult the lender again and look for a solution together.
The difference between a private loan and а loan from a private person
Financial institutions in Bulgaria are not state-owned, which makes their loan a "private loan". In principle, things can not go wrong if you know that the amounts you can borrow are not very large and that they will have to be repaid under the terms of the private loan agreement.
To save unnecessary problems, do not enter into relationships with individuals or creditors of money that are not registered as legitimate credit institutions. Avoid moneylenders, private individuals and pawnshops. They can promote their services as loans from individuals at no extra charge. At first glance, this may seem like a real way out of an emergency, but it will probably cause you a lot of headaches.
Risks of borrowing from private individuals
Unlike a loan to yourself or a loved one, this type of loan has both interest and a lot of uncertainty. If you take out a loan from a bank, questions such as fees for early repayment, how are things to change the terms of your loan - installment, term, interest, when your loan may be declared due and how the collateral can be realized, if any such, are largely clear and settled.
In the case of private individuals, however, very often these issues are not clearly regulated in the contract at all or are regulated in such a way that only a person with legal education can understand them. When repaying the loan, it is important to have documentary evidence of the repayment of your installments. Be careful with giving cash or remittances to individuals that the lender may make you do. If you do not protect yourself, there is no one to protect you.
13.05.2022
MORE OPPORTUNITIES TO FINANCE THE EMPLOYMENT OF DISADVANTAGED UNEMPLOYED
As of yesterday, May 12, employers who want to enjoy preferences in hiring unemployed people from disadvantaged groups in the labor market can apply at labor offices. The deadline for applying for funding is May 20 inclusive, and the opportunity is provided by incentive measures of the Employment Promotion Act and the Program for training and employment of the long-term unemployed.
Funds are used to encourage employers who create jobs and employ representatives of disadvantaged groups in the labor market - the unemployed over the age of 55, young people under 29, people with permanent disabilities, the long-term unemployed, people with primary and lower education, mothers with children up to 5 years of age and others. Funds from the state budget stimulate the creation of jobs for internships, apprenticeships, hiring the first 5 people, the so-called "green jobs" and others that can help ensure employment of unemployed people with lower chances for labor realization.
By May 25, the Cooperation Councils of the Labor Office directorates will evaluate the applications submitted by the employers according to the approved methodology with criteria, and within one month after that the approved employers must employ the selected unemployed persons.
Employers can get more information at the labor offices in the country, as well as on the website of the Employment Agency in the section "Announcements for funding by region".
13.05.2022
THE MLSP WILL INVEST OVER BGN 1.2 BILLION THROUGH THE RECOVERY AND SUSTAINABILITY PLAN
The Ministry of Labor and Social Policy (MLSP) will invest a total of BGN 1,224,800,000 through the Recovery and Sustainability Plan of Bulgaria. This is 10% of the value of the entire plan for Bulgaria. The Ministry is the first institution ready to launch a procedure under the Plan. This was said by the Minister of Labor and Social Policy Georgi Gyokov at a blitz control in the National Assembly.
The Reconstruction and Sustainability Plan of Bulgaria sets out 3 reforms and 6 investment intentions within the competence of the MLSP. The reforms are in the areas of minimum income, the process of deinstitutionalization for adults and improving their skills. They will be complemented by the measures financed under the Human Resources Development Program 2021-2027, said Minister Gyokov.
The main focus of the reform in the field of minimum incomes is to expand the scope of support for the needy people with the lowest incomes. Through a change in the Regulations for the implementation of the Social Assistance Act, by 2024 a gradual increase of the differentiated minimum income to 30 percent of the poverty line is envisaged. The document is planned to enter into force on January 1, 2023.
The reform in the field of social services envisages the existing homes for mentally retarded adults, homes for adults with mental disorders, homes for adults with physical disabilities, homes for adults with sensory impairments and homes for adults with dementia to be closed until January 1, 2035 At the same time, all old people's homes should be reformed by January 1, 2025 in accordance with the quality standards of residential care for the elderly over working age, defined in the Ordinance on the quality of social services.
Minister Gyokov also outlined some of the investments that the MLSP envisages in the social department. About BGN 380 million will be set aside for basic digital training for 500,000 unemployed and working people. The construction of 125 new social and integrated health and social services for residential care and 125 accompanying services for people with disabilities is envisaged. 82 existing social services will be reformed according to the new quality standards and energy efficiency activities in approximately 840 existing social services. The budget for this activity is BGN 753 million.
Minister Gyokov also acquainted the deputies from the social commission with the developed measures to support the Ukrainian citizens who fled the war. A procedure is being prepared under which they will be able to receive support for inclusion in employment for a period of up to 6 months. It also provides for the provision of hourly childcare services, as well as psychological assistance, vocational guidance, employment counseling.
13.05.2022
THE STATE HAS PROVIDED OVER 30,000 VACANCIES FOR BULGARIAN AND UKRAINIAN CITIZENS
More than 30,000 vacancies for Bulgarian and Ukrainian citizens, applied for by employers or under subsidized employment measures, are provided by the Ministry of Labor and Social Policy, the Employment Agency and the Human Resources Development Program. This was said by the Executive Director of the Employment Agency Smilen Valov during a briefing of the Operational Coordination Group of the Government to support those fleeing the war in Ukraine.
So far, the employees of the labor offices have consulted over 20,000 Ukrainians about the possibilities to start working in our country. More than 10 job fairs were held in different cities. Voluntary questionnaires for their professional competence have also been completed. So far, about 2,400 Ukrainians with temporary protection status have started working under an employment contract.
"As of Monday, we are starting outsourced workstations at 72 points, many of them will be in the resorts. The goal is for the Bulgarian and Ukrainian citizens wishing to start work to be immediately provided with a vacancy with the coordinates of an employer, "Valov explained. He clarified that 75% of employers who have applied for jobs have the opportunity to hire staff immediately, and 50% can provide permanent employment.
The executive director of the Employment Agency also announced that so far more than 16,000 Ukrainians have received one-time benefits of BGN 375.
13.05.2022
WHICH PEOPLE WILL FALL OUT OF THE LABOR MARKET
According to the World Economic Forum, critical thinking and problem-solving skills will be the most sought-after skills by employers. How technology is changing the labor market and creating a need for skills that employees need to have, what are the skills that employers are looking for and will look for in the future in the age of technology, and teleworking.
Krasimira Karadzhova, Member of the Management Board of the Bulgarian Association for Human Management and Deputy Head of Department and Regional Coordinator of the Bulgarian Association for Human Management for the Black Sea Region, spoke on the topic to Radio Sofia. She stressed that a distinction must be made between "competence" and "competency".
"Competence - this is the ability to do something in a certain way and is based on the skills we have acquired. While competency focuses on how a specific task is performed and is based on behavior," Karadzhova said, adding that most companies have introduced competency models.
According to her, according to the World Economic Forum before the covid crisis, the most sought after competencies are complex problem solving, critical thinking, creativity, people management, coordination with other people, emotional intelligence and more.
According to her, the crisis has changed the labor market, as it has forced a large number of people to work remotely, which has led to the development of self-motivation, coordination, critical thinking, communication and social skills and more and a large proportion of employees who have worked online have developed these skills.
Karadzhova said that there is currently a return to the offices and these skills acquired by employees will not be able to be fully applied, but they will lead to better performance of tasks and less supervision by the employer.
"This is future development and these skills will certainly be needed in the future and to work in a global environment," Karadzhova said, adding that emotional intelligence and coping with stress are difficult to measure, but individual plans can be made and everyone to be able to optimize their results.
She added that with the advent of automation and digitalisation, lower-skilled people will drop out of the labor market and be replaced by machines and artificial intelligence. This requires retraining, and that most companies need to create such an atmosphere that their employees themselves want to participate in training.
12.05.2022
WHAT ARE THE OPPORTUNITIES FOR EMPLOYERS TO HIRE UKRAINIAN CITIZENS?
Undoubtedly, the war in Ukraine had its economic and social impact on all European countries. In social terms, the influx of people fleeing the war has necessitated the adoption of swift and adequate measures by EU member states, which have expressed their solidarity and highlighted the role of civil society in helping Ukrainian citizens. As part of this unified policy, the Bulgarian state has also adopted relaxed measures for access to the labor market for Ukrainian citizens in order to respond appropriately to the new workforce flowing into the country.
The measures adopted for access to the labor market of Ukrainian citizens include several procedures, some of which we will discuss in more detail in this article. Ukrainian citizens can stay without a visa in Bulgaria for 90 days, during which time they can apply for temporary protection for one year or for international protection.
Temporary protection
By Decision № 144 of the Council of Ministers of March 10, 2022, temporary protection of Ukrainian citizens was introduced for a period of 1 year, as of February 24, 2022, and may be extended if necessary twice by 6 months, ie. e. until February 24, 2024.
Temporary protection may be granted to the following persons:
- Ukrainian citizens residing in Ukraine before 24 February 2022 and members of their families
- Stateless persons or third-country nationals other than Ukraine who have been granted international protection or other equivalent protection in Ukraine before 24 February 2022 and members of their families
- Stateless persons or third-country nationals other than Ukraine who can prove that they resided legally in Ukraine before 24 February 2022 on the basis of a valid permanent residence permit issued in accordance with Ukrainian law and cannot to return permanently to their country or region of origin under safe conditions.
The regime for granting temporary protection is registration, and is carried out personally by the person who wishes to receive temporary protection. The person is issued a registration card for temporary protection with a personal number of a foreigner (PIN). Receiving temporary protection of persons entitles them to remain in the territory of the Republic of Bulgaria for the duration of the temporary protection, to work legally in the Republic of Bulgaria, for social assistance, free medical care and others.
Persons with temporary protection status can register as jobseekers with the Labor Office Directorate at their permanent or current address.
Work of Ukrainian citizens with a Bulgarian employer with temporary protection
Citizens who have been granted temporary protection have the right to be employed on a labor contract with a Bulgarian employer, and the rules of the Bulgarian labor and social security legislation apply to them. In addition to the necessary documents for starting work, individuals should also present their identity document from the country of origin, as well as the registration card for temporary protection.
International protection
Ukrainian citizens can apply for international protection and receive refugee or humanitarian status in Bulgaria when they are persecuted or when their lives or safety are threatened. The process of granting international protection is considerably longer and more complex, requiring a thorough examination of documents, and the procedure may end in refusal or granting of status (humanitarian or refugee).
During the proceedings for international protection the foreigner has the right: to remain on the territory of the Republic of Bulgaria; to move within the defined zone on the territory of the Republic of Bulgaria; of shelter and food; of social assistance in the order and in the amount determined for the Bulgarian citizens; of health insurance, of affordable medical care and of free use of medical care under the conditions and by the order for the Bulgarian citizens, etc.
With granted humanitarian status (as is usual for Ukrainian citizens), the foreigner has the right to issue a card to a foreigner with humanitarian status, which is valid for 3 years, the rights and obligations of a foreigner with a permanent residence permit in Bulgaria, which include the right of: work without special permission, education in public schools and universities, etc.
Work of Ukrainian citizens with a Bulgarian employer with international protection
Employers should keep in mind that persons in the process of being granted international protection do not have the right to access the labor market and therefore cannot be employed by them. However, in case the procedure for granting international protection is not completed within three months from the submission of the application due to reasons beyond their control, they have the right to work in Bulgaria without a work permit until the end of the procedure. The employer has an obligation to declare the employment of Ukrainians enjoying rights under the Asylum and Refugees Act.
Ukrainians and members of their families with international protection in Bulgaria have the right to work in our country without permission to access the labor market. Persons with refugee or humanitarian status can register as jobseekers with the Labor Office at their permanent or current address.
Additionally, Ukrainian citizens have the right to reduced conditions for access to the labor market in the presence of Bulgarian documents proving Bulgarian origin, as well as the right to seasonal work up to 90 days in agriculture, forestry and fisheries, hotels and restaurants in Bulgaria without interruption at 12 months.
Employers wishing to hire new employees, incl. Citizens who have left Ukraine have the opportunity to apply electronically for vacancies using one of the following opportunities provided by the Employment Agency, namely:
The measures taken by the state can be defined as those on the one hand in line with the common policy introduced by the EU in support of Ukrainian citizens, and on the other hand aimed at facilitating employers in hiring and meeting the need for labor in certain sectors of the economy.
12.05.2022
760 INTERNET CLUBS FOR E-LEARNING FOR OVER 50S ARE BEING OPENED
Already this year, the state will invest funds to open 760 digital clubs across the country, where seniors over 50 will be able to learn computer skills. The intention is enshrined in the National Action Plan for Employment in 2022, and the financing itself is set in the Plan for Reconstruction and Sustainability of Bulgaria, funded by the EU Fund for Reconstruction and Sustainability.
These clubs will be created under a project for a single virtual platform for adult education in an electronic environment, which is planned for this year. The clubs will be equipped with modern computer and other equipment plus internet access, so that the elderly and unemployed Bulgarians would join online training, assisted by mentors. The idea is especially important for those working in agriculture, where there is a great need for online training for people in the second and third ages.
Digital clubs will be open to free access, with priority being given to disadvantaged people, including people who do not have their own equipment and internet.
The construction of the platform will expand the access and opportunities for quality adult education and will allow training at any time and from any place. The virtual platform will bring together electronic learning opportunities and resources, set quality criteria for the online training provided and ensure traceability, monitoring and quality control of training.
Data from the labor offices for 2021 show that the economically inactive population in Bulgaria aged 15-64 has exceeded 1.227 million people, compared to 1.226 million in 2020. The relative share of all registered unemployed increased by 4 percentage points , to 23.6% at the beginning of 2021 compared to the same period in 2020. Lack of qualifications and low education in more than half of the long-term unemployed is the main reason that hinders the faster decline in the number of long-term unemployed.
The downward trend in unemployment in the 50+ group, which has been observed since 2015, was interrupted in 2020 as a result of the COVID-19 pandemic, and in 2021 it resumed its downward trend. The average monthly number of adults over the age of 50 is 74,652 - 19,437 less than in 2020. Their relative share of all unemployed is 41.1%, an increase of 2.2 percentage points. annually.
That is why in 2022 our country will focus on European lifelong promise programs and policies for learning by older people. The European Adult Learning Program and the Recommendation on Skills Development and the Electronic Platform for Adult Learning in Europe (EPALE) will provide methodological support to professionals involved in the adult learning sector by combining online and offline events, conducting various training webinars , as well as methodological support to the newly established regional coordination groups for the development of regional analyzes and programs, is already written in the National Action Plan for Employment in 2022.
12.05.2022
THE DIGITAL FUTURE OF BULGARIA
Specialist analysis
Digitalization has an impact on many processes - on the strategic potential of economic development, improving labor productivity, quality of life and even the formation of different communities, informed by different channels.
This is true for the whole world and Bulgaria is no exception. We have many new opportunities at our disposal to build a modern society that is sustainable in the long run. The strategy for digital transformation undertaken by the European Commission is a headwind for our country, which faces the serious challenge of building an even more open and even more competitive economy.
How digital is Bulgaria?
In order to measure the digital progress of the Member States, the Commission has been using the Digital Economy and Society Index since 2014. Bulgaria continues to rank last with Romania in 2020, which shows that there is huge potential for progress.
The rise of Bulgaria in this important ranking will happen with significant investments from both the public and private sectors. Any delay leads to an increase in the cost of funding, as well as the time it will take for each person to increase their digital knowledge needed to achieve higher added value, as well as to build a sustainable society and a competitive business.
Human capital, technology, digital public services - we can do more
According to the index, the digital skills of the population are divided into basic skills for using the Internet and digital devices and more complex ones, indicating the presence of IT specialists, students and training companies. According to this criterion, Bulgaria is in last place. With more sophisticated skills, however, our country is even at the level of France, which is the EU average. In other words, our focus should be on improving the basic digital skills of as many people as possible. Statistics show that 1 in 5 people in Bulgaria has never used the Internet.
Another important measure that forms the final index is the introduction of digital technologies. They allow businesses to gain a competitive advantage, improve their services and enter more markets. The EU's digital sovereignty will depend on the ability of states to store, retrieve and process data, while respecting the requirements of trust, security and fundamental rights. According to this indicator, Bulgaria is in last place and urgent and purposeful efforts are needed to achieve change. The EC monitors the availability of 12 technologies that companies are developing. In our country, as well as in Romania, Latvia and Hungary, 50% of companies have invested only in a small number of them - from 0 to 3. Among these technologies can be seen typical as having a website with a description of products/services and opportunity for shopping, but also more detailed such as 1% of turnover from e-commerce, big data management, as well as the use of industrial robots or 3D printing. For example, in Bulgaria only 5-6% of companies use big data in their main business processes.
Interaction of citizens with state institutions through digital channels is also an important criterion. 36% of Internet users in Bulgaria communicated with the authorities online in 2020. The interesting thing here is that in fact the availability of digital public services in our country is not so far from the EU average compared to the previous criteria of the index, which shows the need by explaining to citizens what, where and how they can use the digital channel. The fact is, however, that public communication systems are obsolete, but the newly formed Ministry of e-Government is making serious demands to change them.
High level technology sector
Bulgaria is in the first half of the Member States whose technology sectors account for a significant percentage of GDP. For 2018 it is 5.5%, and preliminary NSI data show that this percentage is already close to 8. The productivity of the ICT sector is also in the top 5, which shows that despite its smaller scale in absolute value, the people in it work at a high level.
Recent years have given rise to important organizations for the digital development of our country. One of them is the Institute "Big Data for the benefit of intelligent society" GATE at Sofia University "St. Kliment Ohridski ”, which aims to be a kind of bridge between science, government and business. As of this year, it is officially NATO's test center in the field of big data and artificial intelligence.
The INSAIT Institute of Computer Science, Artificial Intelligence and Technology was officially opened in April this year. It was established in partnership between Sofia University and two of the world's leading technological universities - the Swiss ETH Zurich and EPFL. The project is the first of its kind in Eastern Europe and is recognized by global companies such as Google and DeepMind, which will invest nearly 6 million over the next 3 years, and Amazon Web Services with 7 million. For its part, Bulgaria will invest 170 million over the next 10 years.
12.05.2022
WHAT SHOULD BE THE INCOME IN ORDER TO REPAY A LOAN EASILY
Over the years, many clients have asked themselves questions such as: "Will I be approved for this loan", "What installment will they approve for me", "What amount will the bank agree to grant me", etc. In reality, however, what the bank is ready to take from us as a monthly loan expense and what we are willing to set aside is a question that often diverges. Practice shows that banks are willing (with stable incomes) to provide financing in an amount higher than advisers recommend.
The recommendation of the banks
From the bank's point of view, most require the installment on the loan you want from them plus the installments on your current loan products (if you have any) not to exceed 45-60% of the net monthly income of the applicant (s) (if more than one). Exceptions are made in the debt-to-income ratio, even up to 70% at some banks.
The recommendation of the consultants
Credit counselors as well as financial planning experts recommend that this ratio, which measures the healthy level of indebtedness, should not exceed 40% of the net monthly income of the family. Of course, if the income is different in different months, it is advisable to make calculations based on the average for the last 12 months.
For example:
With an average monthly income (the total amount of net income divided by the number of months, in case 12) of BGN 1,750, the total amount of liabilities on all loans should not exceed BGN 700 or 40% of the average monthly amount.
What kind of loan can a borrower with an average level of income according to NSI data afford?
According to NSI data for the fourth quarter of 2021, the average total gross income per person is BGN 1963.60, which for an employee (born after 1960) is BGN 1523 net remuneration. If we use these data, applying the above methodology for applying the principle of reasonable (healthy) level of indebtedness, the total monthly value to all creditors should not exceed BGN 609. This example is for the purposes of calculations and representative, without claiming for accuracy.
From the point of view of borrowers, it is worth thinking, "Okay! I will set aside a certain amount of my monthly income for loan installments/loans. But will I be able to cover my other fixed expenses (utility bills, food, entertainment, etc.) with the rest? ". You should not neglect questions related to whether you will be able to be regular payers and if the bank in objective circumstances raises the interest rate, respectively the monthly installments on the loans.
Basic recommendation
Expenditure on your loans should be as low as possible as a percentage of household income. This will give you the comfort of not worrying about monthly installment increases. It will help you accumulate liquidity buffer faster. You will not have to "tighten your seat belts" and deprive yourself of pleasures that bring joy to you and your loved ones.
Always try to have a liquidity buffer, popularly known as "white money for rainy days" in the amount of at least 6 monthly household expenses. This will help you to be financially secure in the event of unforeseen surprises (even if these costs are related only to happy occasions).
And remember! Whenever you feel "overly wealthy" and your savings significantly exceed the recommended liquidity buffer, you can repay your loans early (in part or in full), with minimal or no fees.
