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Bulgarian startups propose anti-crisis measures for innovative SMEs to govt – SeeNews


SOFIA (Bulgaria), March 30 (SeeNews) – Innovation Ecosystem Coalition, a Bulgarian startup ecosystem, said it is proposing to the government a set of measures for reducing the impact of the coronavirus pandemic on local innovative small and medium-sized enterprises (SMEs).

The measures envisage accelerating the processes and shortening the terms for the launch of operations by already selected contractors under programmes for financing through the Fund of Funds, postponing social and pension contributions of SME employees until the economic environment has improved, and starting a dialogue with the European Investment Bank (EIB), the European Investment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) for providing additional capital to SMEs, the organisation said in a statement highlighting an open letter to the government on Friday. 

The Innovation Ecosystem Coalition, comprising the Bulgarian Startup Association (BESCO), EDIT.bg, MOVE.BG, entrepreneurial organisation Endeavor and Bulgarian Private Equity and Venture Capital Association (BVCA), has submitted its proposals to the government.

The ecosystem expects from fund managers some 450 million levs ($254.6 million/230.1 million euro) in public resources for SMEs in different stages of their development, the organisation said, adding that these funds will support the successful growth of all participants in the entrepreneurial ecosystem in Bulgaria.

“It would be efficient if already selected banks, fund managers and other intermediaries from the Fund Manager of Financial Instruments in Bulgaria (FMFIB), EIF and EBRD are provided with additional resources for support of SMEs from national and European funds,” the Innovation Ecosystem Coalition noted. 

What SMEs need most at the moment is a clear and easily accessible mechanism for receiving liquidity, the organisation said.

Last week, Bulgarian prime minister Boyko Borissov said that the government will introduce a package of financial measures worth 4.5 billion levs to support businesses under strain from the coronavirus disease (COVID-19) and preserve jobs. 

The measures include increasing the capital of state-owned Bulgarian Development Bank (BDB) to help businesses affected by the COVID-19 pandemic, government-backed payment of 60% of the salaries of employees who might otherwise be fired, delaying the payment of annual corporate tax until June 30 and offering interest-free loans to workers put on leave

Earlier in this month, Iliya Lingorski, chief economist at BDB, said that the state-run bank will implement a set of programmes aimed at mitigating the negative effect of the COVID-19 pandemic on local SMEs.

As of Monday, there are 354 confirmed coronavirus cases in Bulgaria, including eight deaths related to the disease as well as 15 recoveries. Bulgaria is currently in a state of emergency due to the virus.

(1 euro = 1.95583 levs) 





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