Bulgaria’s Economy Minister: BGN 2 Billion Poured into Business to Help It Stay Afloat

Since the outbreak of the coronavirus pandemic, the Ministry of Economy and the Ministry of Labour and Social Policy have poured into the Bulgarian businesses BGN 2 billion, as BGN 300-400 million have not yet been paid, but have been agreed, said Minister of Economy Lachezar Borisov.

"We managed to strike a balance between liberal anti-epidemic restrictions and economic measures and it has has worked," he was adamant.

As evidence Borisov quoted the stable macroeconomic indicators of the country compared to the other EU Member States: the lowest levels of government debt and deficit relative to GDP, relatively low unemployment – about 7%. For comparisons in Spain it is 16%, as among the country’s young people it reaches 40%.

  "If it were not for the crisis, we would have finished 2020 with a zero deficit," Minister Borisov told bTV.

To support the thesis that our country is doing well, despite the pandemic, are also the data on the bankruptcies last year. "In 2020, there is even a decline in inactive companies compared to 2019, their number has decreased by 4%," he said.

The most affected by pandemic is still the restaurant industry. "I understand the view of the restaurants owners. I also want the business to work, but people’s health is more important", said Borisov.

The Economy Minister is sure that there should be no changes to tax policy at the moment, as the opposition wants.

'Tax policy is functioning well at the moment and it shouldn't be changed. Intervention to support business should be with financial measures, not through changes in tax policy," he said.

Minister Borisov also commented on the situation in the automotive industry, which is one of the most dynamically developing sectors in recent years. He reminded that 5-6 years ago it started from scratch, and today about 270 companies operate in our country and we receive increasingly more inquiries about investments.

One of them is from a large international company, which shows interest and is expected to start negotiations. The minister declined further details because of the confidentiality of the information and the initial stage of the talks.

Lachezar Borisov also commented on the latest information related to the condition of the dams, as the Economy Ministry is in charge of them, and said whether there is a risk of overflowing, especially against the background of recent heavy rainfalls. "At the moment there is no problem with the dams in the country. There was heavy rain in eastern Bulgaria, but  for the dams there is no problem," he stressed. /BGNES

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