Bulgarian government presents modest emergency financial support

The Bulgarian government is taking a cautious approach to saving its economy, apparently more concerned by the dangers of overreacting than doing too little. At the moment, borrowing from abroad is not being considered. However, companies that can prove year-on-year sales losses of more than 20 percent could receive up to 60 percent of the amount they need to pay salaries. However, they'll only be considered if they don't lay off their workers.

Employers weren't thrilled, however, at the prospect of covering the remaining 40 percent, as well as full social contributions. Around BGN 700 million is earmarked for the recapitalization of the Bulgarian Development Bank, BGN 200m of which will go towards providing BGN 1,500 consumer loans for those who have been put on unpaid leave. The remaining 500 million leva will go towards ensuring compay liquidity. In addition, the government allowed companies to defer payment of corporate income tax until the end of June. In all, the measures are expected to take a BGN 600m bite out of the budget. The poorest pensioners will be allocated BGN 50m in one-off payments for the Easter holidays.