Coronavirus: Government provides BGN 4,5 billion for economic measures

More than BGN 4 billion in the form of 8 financial measures have been announced by the government to tackle the economic consequences of the coronavirus situation.

On April 21, Finance Minister Vladislav Goranov explained that more than BGN 2 billion is provided through the Fund of Funds for working capital and equity loans for micro, small and medium-sized enterprises and municipalities.

The Bulgarian Development Bank provides BGN 200 million to provide interest-free loans for people without income and for the self-employed.

Through another BGN 2 billion resource, the business is enabled to make working capital loans.

The Minister of Finance explained the conditions under which self-employed are entitled to apply for interest-free loans of up to BGN 4,500 with a grace period of 24 months.

Through another measure secured by the Development Bank, small and micro companies can get up to BGN 300 thousand of loans through commercial banks.

Vladislav Goranov: Eligibility criteria are a decrease in turnover for the first quarter of 2020 compared to the first quarter of 2019.

The eligibility criteria are a decline in turnover by 2020 based on the reports. Presence of receivables from customers unpaid to suppliers. Delayed deliveries. Cases of illness, self-isolation.

Separately, the Fund of Funds grants 24 million for micro-credits that can be used by self-employed individuals or small businesses without credit histories that do not have access to traditional bank financing. They can receive up to 50 thousand investment and working capital loans.

BGN 450 will be allocated to support nearly 400 start-ups.

A total of BGN 418 million is provided to municipalities.