Financial and business news from Bulgaria

Deputy Prime Minister Nikolova met with the Association of Banks in Bulgaria and BDB

The possibility to renegotiate bank loans for tourism sector in order to avoid bankruptcies in the industry was a main topic of the working meeting initiated by Deputy Prime Minister and Minister of Tourism Mariyana Nikolova with the leadership of the Association of Banks in Bulgaria and the Bulgarian Development Bank.
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ado.slave ('adoceanblitzbgvppmqmhred', {myMaster: '32krqyjgbc4z5Sigp3zu1zeyf3dx9g_PSWM02Cjdcel.s7'}); The meeting was organised at the industry's insistence to the Deputy Prime Minister as a result of her series of meetings over the past two weeks.

Minister Nikolova pointed out that tourism was first affected by the pandemic caused by the spread by COVID 19 around the world and the sector almost stopped working. Due to the effects on economies, the European regulatory authority allowed the rescheduling of up to 9 months of loans. An exception to this privilo was made by only one European country and extended that period.

At the meeting the option to seek a solution to the problem was discussed, with new talks with the BDB to seek an opportunity to support the sector.

Representatives of the Association of Banks indicated that they were aware of the difficult situation in the sector. They reminded that the European Central Bank does not tolerate sectoral relief. Bulgarian banks are proposing restructuring and postponing obligations traditionally used in a number of other countries, the association explained.

The talks also discussed the possibility of creating a guarantee fund, which would help companies working in the tourism sector to go through this difficult period and protect companies from bankruptcy.