By the end of October, four new procedures in support of Bulgarian companies will begin, this country’s Deputy Minister of Economy Yana Topalova announced within the frameworks of an online forum dedicated to financial measures in support of business amid Covid-19. The companies are expected to receive gratuitous aid to the tune of EUR 102 million under Innovations and Competitiveness Operational Programme.

The medium-sized companies with turnover exceeding EUR 255,000 are to benefit from part of this sum allotted to the business to overcome the economic consequences of coronavirus pandemic. A total of EUR 39 million will be allocated for these companies which will ensure liquidity and working capital. The companies will be also able to use this financing to cover their expenses.

The second procedure “Adapting the activities of the small and medium-sized enterprises in the context of Covid-19” also has a budget of just over EUR 39 million. This amount will be allotted to the companies for the reorganization and creation of safe working conditions. 

“We have already signed the contracts with the Ministry of Transport, Information Technology and Communications and the Ministry of Tourism which will be direct beneficiaries of gratuitous financial assistance under the Operational Programme Innovations and Competitiveness”, Deputy Minister Topalova said further. The contracts are related to procedures in support of small and medium-sized enterprises operating in the bus transport sector to the tune of just over EUR 15 million, as well as to procedures for support of tour operators and travel agents to the tune of EUR 5 million.

Over EUR 34 million can be negotiated under the procedure “Improving production capacity in small and medium enterprises”, Deputy Minister of Economy Yana Topalova went on to say. “In other words, the companies which were already approved for financing are to receive money for investments in machinery and equipment, in order to increase their production capacity”, Yana Topalova explained.

The review of all nearly 27,000 project proposals under the procedure for support of micro and small enterprises has already been completed and over EUR 88 million will be paid to more than 21,000 companies by the end of the week, it became clear from the words of Deputy Minister Topalova. She also informed that the evaluation of the procedure for support of medium-sized companies, which is expected to be completed by the middle of November, has begun.

In addition to grant schemes, business support measures include soft loan opportunities with the support of the Bulgarian Development Bank. So far, more than EUR 70 million has been invested in Bulgaria’s economy through the Bulgarian Development Bank under the anti-crisis measures, including loans extended to companies under the “Programme for portfolio guarantees in support of the liquidity of micro, small and medium-sized enterprises” to the tune of over EUR 30 million.

Yana Topalova also emphasized the opportunities offered by the Fund of Funds and the Bulgarian Export Insurance Agency (BAEZ) which enables companies to operate under deferred payment conditions, providing insurance coverage.

Compiled by: Diana Tsankova

English version: Kostadin Atanasov