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Business organizations demanded on Monday night that the State compensate them with a package of measures for the closure proposed by the Minister of Health, which will be voted on Wednesday by the Council of Ministers. The Bulgarian Chamber of Commerce (BIA) insisted that the state draw up a program to support the affected companies. Hoteliers also asked for support, saying that if people had to choose between starvation or Covid-19, all measures would be meaningless.
The associations of the establishments insisted that the government take no action until it is decided and publicly announced what state support will be given to all those affected. They demanded concrete support such as assuming 80% of staff salaries, offsetting 20% of billing, a moratorium on loans, rents, interest.
BIA requested a national program to support the affected company
Bulgarian companies understand the need to take restrictive measures aimed at preserving people’s lives and health, but insist that they be accompanied by a support program for affected companies. The Bulgarian Chamber of Commerce insisted on this, noting that in other European countries, which imposed similar restrictions in recent weeks, along with restrictive measures, large-scale economic measures were presented for the period of the so-called blockade.
For example in Austria The companies affected by the closure can request up to 80% of their turnover for the same period last year. A similar measure has been agreed in Denmark, where small and medium-sized companies, whose turnover has fallen by 30% as a result of Covid-19, can receive compensation of up to 90% of their turnover, and large ones, up to 70%. Companies that have been forced to close due to Covid-19 – incl. Nightclubs, event organizers, etc., which are de facto closed, can request a compensation of 100% of their lost billing. IN Hungary The state will reimburse 80% of the value of reservations in the tourism sector made within 1 month before November 8 of this year.
“Realizing that our capabilities are limited, we insist on establishment of a national support program for Bulgarian companies affected by restrictive measures, providing the opportunity to quickly receive compensation at the expense of the state. One of the measures that the National Program should cover could be support for uncovered fixed costs of companies“, Create BIA.
This measure is already part of the EC Temporary Framework for State aid, modified and extended on 10/13/2020. It enables Member States to support companies facing a decrease in turnover of at least 30% during the eligible period compared to the same period in 2019 due to the coronavirus pandemic. The aid can cover part of the fixed costs of the beneficiaries, which are not covered by their income, up to a maximum of 3 million euros per company.
Despite the efforts of the Ministry of Economy, 8 months after the outbreak of the pandemic and the declaration of the state of emergency in Bulgaria, much of the subsidies have not yet reached business. The reason is that the funds are spent through operational programs, which are accompanied by a series of administrative procedures. As we have repeatedly emphasized in recent months, The most important thing about support in the current crisis is not so much its size as its timely delivery.“Let’s say from BIA.
The team of the Bulgarian Chamber of Commerce is available to participate with proposals in the elaboration of specific economic measures.
Hoteliers: the measures make no sense when choosing whether to starve or Covid
The Bulgarian Hotel and Restaurant Association also demanded the support of the state.
“We understand the need for measures that require the closure of our business and much of the state for at least three weeks. However, in order for us, our families and employees to survive, we insist that our workers and our business to be supported by the state, as not only has our fat been depleted for almost 9 months since March, but also the vital forces of tourism are coming to an end“says the position of hoteliers and restaurateurs. They recall that in recent months they have sent to the cabinet a series of letters and proposals with measures to allow their business to survive and that the budget is not burdened with additional costs for tens of thousands of employees who are about to lose their jobs . support.
“We have repeatedly proposed that the state bear the costs of salaries and insurance for employees in closed businesses in order to keep their jobs. We insist on assistance to reschedule our bank loans, to provide liquid funds, for financial support, to reschedule debts with municipalities and the state, to reduce some of them, to support employers with closed businesses with a percentage of their billing held in 2019 ”, say of BAHRA.
They add that they have unfortunately not been listened to, but have only received indirect promises that work is underway and that further measures will be provided to support the sector.
“BAHRA supports all measures against the epidemic that would save the lives of our loved ones, customers and employees. But If these same people have to choose whether to starve or Covid-19, then all the measures are meaningless.“says the post.
Restaurants want a moratorium on loans, rentals, interest
The president of the Bulgarian Restaurant Association (BAZ) Richard Alibegov and the president of the Bulgarian Restaurant Association (UBB) Emil Kolarov urged the Council of Ministers not to accept any new restrictions until it is decided and publicly announced what state support will be given to all types of companies that will be prohibited from working: benefits for staff, employees indirectly employed in industry, self-employed, financial aid to companies, etc.
Restaurant owners insist: be insured 80% of wages of its employees, in accordance with the employment contracts to which they are assigned and reprogramming of budgetary liabilities accumulated after March 13, 2020, in order to avoid serious intercompany indebtedness.
Be imposed loan default (capital and interests) of legal persons, employees and the self-employed for one more year. Your other request is suspension or simplification of interest rates on budgetary liabilities accrued for the period March-December 2020. Compensation of 20% of the billing of the same month of the previous year for the period in which the business is closed on request, in terms of newly opened establishments to be as a base October 2020 The objective is to cover part of the running costs that are paid one month after they have been incurred (electricity, water, taxes, accounting and other industry specific services). Trash rate rescheduling or recalculation in view of the lack of one made for branches that have been closed. Rental forgiveness at municipal and state sites during the period the sites are closed by order.
We believe that possible solutions, which may consist of the closure of hospitality and entertainment establishments only, will not have the desired effect. Proof of this is that a month after the clubs are deprived of the right to work, the effect is not, on the contrary, “they say.
For the Sports Minister, the measures are a novelty
Sports Minister Krasen Kralev later commented that the proposals are a first for him and will be discussed with cabinet ministers.
“What we heard in today’s briefing was the opinion of the health authorities on the need for additional measures against the coronavirus pandemic. I respect your expert opinion, but I assure you that these proposals for a partial closure have not yet been discussed with the Prime Minister and each line minister. As stated by Minister Angelov himself “, Kralev commented on his Facebook profile.
“For me these proposals are also new, but I am sure that with colleagues and with the health authorities we will reach a reasonable and fair decision for each department. Of course, there is no doubt that the protection of human life and health will come first. “declares.
Medical Association: measures to be introduced as soon as possible
The Bulgarian Medical Union welcomed the measures and insisted that they be introduced as soon as possible.
“We Bulgarian doctors fully support the new restrictive measures announced by the Minister of Health, Prof. Kostadin Angelov, and we look forward to their adoption in full form as soon as possible. The suspension of restaurants, discos, shopping centers, the cessation of sporting events, seminars, excursions, competitions, congresses and all other measures are totally in favor of the Bulgarian society and will allow us doctors and the health system to take a break “., it is said in the position of professional organization.
According to doctors, this is the only way to break the chain of infection, which has shown strong growth in recent weeks and has lost hundreds of lives. “Let’s keep our distance, but let’s hit each other in this battle! It’s time to unite in the name of life! “, called by the BMA.
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