The budget update for this year allows the state to take out a new debt of up to EUR 5.11 billion / BGN 10 billion/ for the whole of 2020. At the insistence of Finance Minister Vladislav Goranov the idea of financing from the IMF was dropped in view of attaining more favorable conditions by way of loans from other international financial institutions and the issuance of securities. The reason why the state budget was updated are the expectations that domestic consumption in the country will drop, exports and imports will shrink, and the level of employment will fall. The scenario the government assumes will unfold is that the economy will shrink by 3% year on year, the budget deficit will amount to EUR 1.75 billion / BGN 3.5 billion/, and unemployment will exceed 6%.
The amendments made in the state of emergency law reduce, drastically, the sanctions for non-compliance with the measures aimed at checking the spread of the epidemic, with the exception of those applicable for breach of the quarantine regime. For a walk in the park, for example, the fine is EUR 150 (BGN 300), instead of the previous EUR 2,500 / BGN 5,000/. In the event of a repeat offence, however, the fine goes up to EUR 500 /BGN 1,000/. The demands by businesses were taken into consideration for a change in the mechanism of state aid to enterprises affected by the crisis, known as 60/40. Besides the 60% for staff salaries, the state will now also cover 60 % of the social security owed by employers. The share capital of the Bulgarian Development Bank is raised by EUR350 million /BGN 700 million/ for guaranteeing the credits it is going to issue. Thus the state aid for businesses via the bank amounts to EUR 700 million /BGN 1.4 billion/. Small enterprises will be able to take out interest-free credit of up to EUR 50,000 /BGN 100,000/. All people who receive unemployment benefits will be able to work under a contract of employment with farmers under a lighter regime without losing their right to receive benefits from the “Unemployment ” fund. Political parties will not receive state subsidies until the state of emergency is lifted.
Today the State Gazette promulgated the decision of the National Assembly, on the proposal submitted by the Council of Ministers, by force of which the duration of the state of emergency on the on entire territory of Bulgaria is extended until 13 May, 2020.
Edited by Stoimen Pavlov
Bulgaria’s National Assembly rejected the proposal by the Vazrazhdane party to summon Foreign Minister Georg Georgiev for a hearing regarding the vote by the European Parliament's Foreign Affairs Committee, which adopted a report on North Macedonia’s..
The European Parliament's Foreign Affairs Committee adopted the draft report on the Republic of North Macedonia's progress towards EU integration, with 40 votes in favour, 19 against and 10 abstentions. All Bulgarian proposals were rejected, including..
Serbia and Bosnia and Herzegovina refused to sign the SEECP declaration The summit of the South East European Cooperation Process (SEЕCP), held in Tirana under the Albanian presidency, ended without Serbia and Bosnia and Herzegovina..
It’s official—Bulgaria is now the 21st country in the eurozone. From 1 January 2026, the euro will become the legal tender, although levs will still be..
The deadline for the start of the implementation of the new European Media Freedom Act (FEMA) is fast approaching - August this year. "Some..
"What we have let slip, we have let slip over the last 20 years, not yesterday or the day before." This was stated to the Bulgarian National Radio by..
+359 2 9336 661