Bulgaria
Measures taken in response to coronavirus (COVID-19) pandemic
Adoption date |
Type of measure |
Beneficiaries' sector specification |
Description of measure |
10/04/2020 |
Private moratoria |
Banking sector |
On 10.04.2020 the BNB Governing Council approved a plan, proposed by the Association of Banks in Bulgaria, on delay and treatment of banks' and bank subsidiaries' loans in the context of the state of emergency due to COVID-19. The approved document is a private moratorium, implementing the EBA Guidelines on legislative and non-legislative moratoria on loan repayments applied in light of the COVID-19 crisis (EBA/GL/2020/02). The rescheduling could not be longer than 6 months ending on 31.12.2020. The scope of loans that can be rescheduled covers only loans which as of 1 March 2020 were performing or past due no more than 90 days. |
01/04/2020 |
Direct grants |
All non-financial sector |
The state will cover 60 % of the monthly gross salary (including employer’s social security contributions) of the benefitting personnel for companies, which have had to close completely or partially their business activity as a result of the COVID-19 related measures. The companies have to keep their employees and are responsible to cover the rest 40% of the wages. |
11/04/2020 |
Direct grants |
Households |
One-off aid of 375 BGN are granted to parents of children aged under 14 and who are in a non-paid leave for a period longer than 20 working days and who are not able to work from home. |
14/04/2020 |
Public guarantees |
Households |
Bulgarian Government approved a "Program to guarantee interest-free loans to people, who have been deprived of the possibility to work as a result of the COVID-19 pandemic". The budget of the program is BGN 300 million and will be allocated from the capital increase of the state-owned Bulgarian Development Bank (BDB). Each person, who fulfills the conditions of the program will be allowed to borrow once up to BGN 6 900 (app. EUR 3 528) for a term of up to 5 years, with a grace period of not less than 6 months and not more than 24 months. |
23/03/2020 |
Tax deferrals |
All sectors |
Extension of the deadline for submission of the annual corporate income tax returns, and for the payment of the taxes assessed therein, until 30 June 2020. Extension of the deadline for submission of the annual income tax returns and for payment of the tax assessed therein until 30 June 2020 for persons carrying out economic activity in a trading capacity within the meaning given by the Commerce Act, including any sole traders, as well as for persons registered as farmers who have opted to be taxed on the annual tax base. Extension of the deadline for payment of real estate tax as well as the tax on transport vehicles, with a 5% discount of the total annual amount due, until 30 June 2020. |
07/05/2020 |
Public guarantees |
Non-financial corporations |
Capital increase of the state-owned Bulgarian Development Bank (BDB) by BGN 400 million. The funds will be used to support the economy in the context of the COVID-19 pandemic, including to provide portfolio guarantees to the banks, which will allow them to extend credit to the non-financial corporate sector under more flexible conditions. |
24/06/2020 |
Public guarantees |
Non-financial corporations |
Reallocation of resources under the European Structural and Investment funds earmarked for implementation of financial instruments and managed by Fund Manager of Financial Instruments in Bulgaria PLC (FMFIB). FMFIB would structure and place capped portfolio guarantees to banks so to support sustainable levels of SME lending and SME investments. The product is coupled with an interest rate subsidy for companies which demonstrate sub-optimal repayment capacity but nevertheless commit to sustain their number of employees. |
10/06/2020 |
Tax reliefs |
All non-financial sector |
The VAT rate on specific goods and services has been decreased from 20% to 9% until 31 December 2021. The new rate applies to: - the supply of restaurant and catering services, consisting of the delivery of prepared or uncooked food; this does not apply to restaurant and catering services which consist in the supply of spirits even if ancillary supply – from 1.07.2020; |
23/04/2020 |
Tax reliefs |
All non-financial sector |
Pursuant to Commission’s Decision 2020/491, Council Decree № 75 of 2007 of the Council of Ministers of Republic of Bulgaria allows for exemption from VAT and customs duties of the importation of certain medical goods necessary to combat the effects of the COVID-19 pandemic outbreak. The relief applies to importations made from 30 January 2020 to 31 October 2020. Eligible for the relief and exemption of VAT are the goods imported by State organisations. The goods and organisations are exhaustively listed in annexes to Council Decree № 75. |
03/07/2020 |
Direct grants |
All non-financial sector |
Wage subsidies shall be paid for the whole or for a part of the period and refer to the following groups of employees and workers, who are threatened by lay-offs due to the still unrecovered income of the employers caused by the measures to restrict the corona virus contamination: 2. workers and employees who, during the period from 13 March to 31 December 2020, have worked part-time on the basis of Art. 138a, para. 2 of the Labour Code; |
12/05/2020 |
Direct grants |
All non-financial sector |
Provision of non repayable financial support (grant) to micro and small sized enterprises for working capital |
10/07/2020 |
Direct grants |
All non-financial sector |
Provision of non repayable financial support (grant) to medium-sized enterprises for working capital |
10/12/2020 |
Tax reliefs |
All non-financial sector |
Bulgaria grants an exemption with deductibility of VAT paid at the preceding stage in respect of the supply and Intra-Community acquisitions of COVID-19 vaccines and in vitro diagnostic medical devices. Such an exemption applies also to the services closely linked to such vaccines and devices |
23/04/2020 |
Equity participation |
All non-financial sector |
The aid will be granted in the form of equity and/or quasi equity investments. All types of eligible investments are related to a provision of finance to an SME in return of partial ownership in that SME and/or include an option for acquiring equity in the SME. In particular, eligible instruments will include: - quasi equity investments: convertible debt, such as debt with linked warrants or similar derivatives, conversion options embedded in the main debt contractual framework, etc. |
21/12/2020 |
Direct grants |
All non-financial sector |
Provision of non repayable financial support (grant) to SMEs for working capital |
26/11/2020 |
Tax reliefs |
Households |
The tax relief for children allows taxpayers to reduce their tax base by: 4500 BGN for 1 child; 9000 BGN for 2 children; 13500 BGN for 3 and more children. The tax relief for children with disabilities allow taxpayers to reduce their tax base by 9000 BGN for a child with a disability. |
03/12/2020 |
Other measures of fiscal nature |
Non-financial corporations |
The retained corporate income tax can be invested by farmers in new buildings and new agricultural machinery in the 2 years following the year of the retention. |
01/10/2021 |
Public guarantees |
Non-financial corporations |
Reallocation of resources under the European Structural and Investment funds earmarked for implementation of financial instruments and managed by Fund Manager of Financial Instruments in Bulgaria PLC (FMFIB). FMFIB would structure and place capped portfolio guarantees to banks so to support sustainable levels of SME lending and SME investments. |
19/03/2020 |
CCyB |
Banking sector |
The planned increases of the CCyB from 0.5% to 1% as of April 1 2020, and from 1% to 1.5% in 2021 are cancelled. The CCyB remains at 0.5%. The effect of of the measure is estimated at BGN 0.7 billion (0.6% of GDP). |
24/03/2020 |
CCyB |
Securities and markets |
The planned increases of the CCyB from 0.5% to 1% as of April 1 2020, and from 1% to 1.5% in 2021 are cancelled. The CCyB remains at 0.5%. |
19/03/2020 |
Dividend distribution policy |
Banking sector |
Retaining year-end 2019 profit for all banks, including a ban on the redistribution of profit, accumulated during previous years. According to the BNB decision, credit institutions shall not distribute profits for 2019, in whole or in part, in the form of dividends or other similar payments, nor shall they distribute the elements of capital as defined in Part Two, Title 1 of EU Regulation 575/2013, which are formed on the basis of the financial result for the previous periods. |
19/03/2020 |
Reporting requirements |
All financial sectors |
FSC informed the financial markets about ESMA's Public Statement about postponement of reporting obligations under Regulation (EU) 2015/23651 (SFTR) in a COVID-19 situation |
25/03/2020 |
Special provisioning policy |
All financial sectors |
The time limits set in a law, which expire during the state of emergency and involve the exercise of rights or the fulfilment of obligations by individuals shall be extended by one month as from the lifting of the state of emergency. |
25/03/2020 |
Reporting requirements |
Securities and markets |
Extension of deadlines for disclosure of financial statements and information and holding general meetings of public companies and issuers. Reported relief measures for fund managers (submission of reports and other information). Extension of time limits for disclosure of financial statements and information by investment intermediaries, market operator and the entry into force of a specific paragraph. |
25/03/2020 |
Reporting requirements |
Insurance sector |
Extension of deadlines for submiting monthly supervisory data by insurers |
25/03/2020 |
Reporting requirements |
Pension funds |
Extension of deadlines for submiting supervisory data and public disclosure of information by pension insurance companies |
26/03/2020 |
Reporting requirements |
Insurance sector |
FSC issued Guidelines for the application of EIOPA Recommendations on supervisory flexibility regarding the deadline of supervisory reporting and public disclosure - Coronavirus/COVID-19 (EIOPA-BoS-20/236) |
27/03/2020 |
Reporting requirements |
Securities and markets |
Recommendation to the issuers of securities regarding the extension of the deadlines for submission of financial statements. The FSC pay attention to the announcement of estimated deadlines for their submission and and reasons for the subsequent publication. |
02/04/2020 |
Announcement or public statement |
Insurance sector |
FSC informed the local (re)insurance market about EIOPA's public statement urging that at the current juncture (re)insurers temporarily suspend all discretionary dividend distributions and share buy backs aimed at remunerating shareholders as a temporary measure in relation to COVID-19 situation. (Re)insurers that consider themselves legally required to pay-out dividends or large amounts of variable remuneration should explain the underlying reasons to their NCA. |
02/04/2020 |
Announcement or public statement |
Insurance sector |
FSC informed the public about the EIOPA's 'Call to action for insurers and intermediaries to mitigate the impact of Coronavirus/COVID-19 on consumers' |
02/04/2020 |
Announcement or public statement |
Securities and markets |
FSC informed the financial markets and investment firms about ESMA's Public Statement 'COVID-19: Clarification of issues related to the publication of reports by execution venues and firms as required under RTS 27 and 28' |
09/04/2020 |
Announcement or public statement |
Securities and markets |
FSC informed the financial sector about ESMA's Public Statement ‘Actions to mitigate the impact of COVID-19 on the deadlines for the publication of periodic reports by fund managers’ |
16/03/2020 |
Announcement or public statement |
Securities and markets |
The FSC informed the investment community about ESMA's decision temporarily requiring the holders of net short positions in shares traded on a European Union (EU) regulated market to notify the relevant national competent authority (NCA) if the position reaches or exceeds 0.1% of the issued share capital. |
23/03/2020 |
Exemption from penalties/fines |
All non-financial sector |
As regards the fulfilment of financial obligations, the law stipulates that until the revocation of the state of emergency, no sanctions shall be imposed in the event of payments delays such as interest- and delay penalties, contract cancellations and repossessions. - All public sales and repossessions shall be suspended during the state of emergency, and new dates shall be set for them after its revocation. |
25/03/2020 |
Announcement or public statement |
Securities and markets |
FSC informed the financial sector about ESMA's Public Statement ‘Accounting implications of the COVID-19 outbreak on the calculation of expected credit losses in accordance with IFRS 9’ |
28/01/2021 |
Dividend distribution policy |
Banking sector |
Retaining year-end 2020 profit for all banks, including a ban on the redistribution of profit, accumulated during previous years. Banks shall not distribute profits for 2020, in whole or in part, in the form of dividends, share buy-backs or other similar payments, nor shall they distribute the elements of capital as defined in Part Two, Title 1 of EU Regulation 575/2013, which are formed on the basis of the financial result for the previous periods. |