[ad_1]
The Bulgarian Development Bank (BDB) has signed agreements with the first four credit institutions to start working on the Interest Free Credit Guarantee Program to support people deprived of their ability to work due to the COVID pandemic- 19. These are “Investbank”, “International Asset Bank”, “Municipal Bank” and “First Investment Bank”.
The program aims to support unpaid employees and self-employed workers who are temporarily unable to work in a state of emergency. They have the opportunity to obtain interest-free loans of up to BGN 4,500.
The first bank to begin accepting documents on Monday, April 27 is the Municipal Bank. After Wednesday, April 29, they can apply for the program and Investbank’s clients. International Asset Bank will review documents from May 4 and First Investment Bank from May 5.
The interest-free loan guarantee program was adopted by Decision 257 of the Council of Ministers on April 14, 2020 as part of the crisis response measures of the Bulgarian government to protect self-employed workers and employees, according to the statement by press.
Its partners will be 12 commercial banks, which will grant interest-free loans of up to BGN 4,500 at the same time or in three tranches of BGN 1,500 each. Loans will not be guaranteed and no fees, commissions or fines will be charged. The maximum repayment period is 5 years, with a minimum of 6 months and a maximum of 24 months.
BDB also announced the mechanism, terms and procedure for granting loans to individuals.
About the people in the employment contract:
– have stopped paying their employer for paid work and are on unpaid leave as a result of the pandemic;
– Be part of the employment relationship in the last 6 months before taking an unpaid leave;
– Not receiving remuneration for other labor relations;
– Have at least five business days in March, if this is the month they are left without a license.
For people with their own insurance:
– They have discontinued their activities as self-insured persons and / or suffer at least a 20% decrease in their income during the first quarter of 2020 compared to income in the first quarter of 2019 as a result of the pandemic;
– Not receive remuneration for other legal relationships.
Applicants must have paid social security contributions and be able to resume the performance of your activities (you will return to the same job) at the end of the unpaid leave.
The maximum amount loaned is BGN 4,500, drawn simultaneously or in three tranches of BGN 1,500 each. If a lower loan amount is initially allowed, it can be attached later to reach the BGN 4,500 amount.
Loans are interest-free (the regular interest rate is 0 percent) and borrowers owe no fees, commissions, or penalties. Applicants do not provide collateral as a condition of the loan.
The maximum repayment period is 5 years, with a minimum of 6 months and a maximum of 24 months.
Loans are repaid after the end of the grace period in installments, the amount and number of which are determined between the commercial bank and the borrower.
Commercial banks have the right to change the payment schedule agreed with their clients, but within the maximum terms of the program. Every citizen is entitled to early repayment of his debt without having to pay a fee / commission.
The program can be requested by the end of 2020.
Individuals are required to submit to the BDB partner bank under the program:
– Request for financing in approved form (to be provided by the commercial bank);
– Valid identity document – DNI or passport;
– Person’s registration document, if self-insured;
– Data on the employer and the employment contract concluded (an application from the NSSI is also required for the presence of an employment relationship 6 months ago);
Statement containing the following statements:
– Declaration of discontinued activity of self-insured persons and / or documents establishing a decrease of more than 20 percent in the income of self-insured persons in the first quarter of 2020 compared to the first quarter of 2019;
– Declaration that the person is on unpaid leave as a result of the pandemic, with the starting date of the unpaid leave after March 8, 2020;
– Declaration of the applicant on the suspended activity (totally or partially) of his employer, which is a consequence of the pandemic;
– Declaration that the person does not receive remuneration for his work under another legal relationship;
– Declaration of the person’s intention to return to the same job / resume discontinued activity, for independent workers;
– Declaration that the person (whether employed or self-employed) has paid social security contributions;
– Statement that, in addition to requesting the loan, the applicant does not take advantage of another measure provided by the state for individuals in relation to the pandemic.
[ad_2]
