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l Tomislav Donchev saw a danger to this in the idea of the socialists
l We offer cheap financing, counteracts the red Plamen Milev
PLAMEN MILEV
GERB deputy prime minister and deputy candidate Tomislav Donchev launched an attack on a measure proposed by the BSP to finance small businesses. It is about interest-free financing of start-ups, replied Plamen Milev, economic expert and candidate of the Socialists.
The start-up financing scheme offered by BSP allows the state to gradually become a complete master of business, Donchev charged on Facebook.
“If you are not very clear, I will explain how this scheme will work. Start your own business, let’s say, in the production field. You hire 5 people and your country becomes a partner, buying for example 10% of your company The business starts and 5 more workers are hired and as “the scheme applies to every 5 new jobs”, the state buys another 10% of the company. Soon you hire 10 more people and your state is a partner with it. 40% of the company’s capital If we continue with this logic, the moment you hire 50 employees,
your company will
has become completely
Express! “,
analyzes the proposal of the Donchev socialists. And he criticized that “it is a ‘reestablishment of normal economic relations’, as stated at the beginning of the same document.”
“I finally understood why everything GERB stole as a BSP idea was ruined. Unfortunately, the ‘how to control companies’ model adopted and applied for years prevents Tomislav Donchev from understanding that it can be managed with care for people and companies. small businesses, “wrote the socialist Plamen Milev in response.
“The proposal is that if you have an idea but you don’t have money, the State will finance you in exchange for a commitment to new jobs. Business is not just loans and interest, Mr. Donchev. But for that, first of all, someone has to get out of the jeep and stop spending our money on projects that collapse with the first rain, “added the red candidate.
The idea of the BSP was actually to create a fund for equity financing. Who would give money to startups cheaper than banks, and entrepreneurs promised to create jobs, he explained. However, with the money allocated, the state became a partner in the private company. “You don’t owe him his interest, nothing. You run the company yourself, it doesn’t interfere with you, but you monitor how you spend the funds. And at some point, when you show that you have resilience, that is. You didn’t do it just to absorb something. of money, but this company really works, so
no problem yeah
redeem your works
from the field. In other words, this is financing without interest ”, explained the red economist.
The capital proposal was aimed at high-risk businesses that the banks had no interest in financing.
This is how the Fund of Funds should work: an idea we borrowed from ourselves, Milev explained. “But they made the mechanism so that they opened several sub-funds. The State is the guarantor, but you have to go through private intermediaries,” he added. That is why the absorption of these 1.2 billion BGN in the fund was minimal. In fact, the Fund Fund was established under the Juncker Plan of the previous composition of the EC in order to attract cheap bank loans to European business funds.
However, the idea of the BSP is that there are no intermediaries and that the State participates directly. And by making the existing mechanism more flexible, small entrepreneurs would have the opportunity to participate, and not just large companies, Milev explained.
Each year the state will receive a dividend, which will return to the fund and from there new projects will be financed. And with the expansion of the business, by raising capital by reinvesting profits, for example, the share ratio was maintained. The redemption of state shares will be done on a market basis, claims the red candidate.
The state’s involvement provides a much more serious guarantee to foreign investors, Milev added. He gave the example that in Western Europe there are a number of successful companies that have started like this and continue to this day.
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