Financial and business news from Bulgaria

Ministry of Tourism begins payment of state aid of BGN 51 million

The Ministry of Tourism is starting payment of state aid of £51m, the state department said. The Ministry's assessment committee has prepared the documents that can start transfers of amounts to companies, with accurate documents. These are 86 proposals and will receive the subsidy by order of the Minister of Tourism.
In total, the applications submitted so far are 579, which are for just over BGN 31,611 million. All those who wish to submit documents for participation in the procedure can do so by 31 May. The submission of applications for state aid is carried out electronically by filling in a web-based application form and accompanying documents through the National Investment Management System (SUNI), through the module “E-Application”. Applications began on 8 February and a week earlier the guidelines for participation in the project were published.

The measure constitutes state aid in the form of direct grants, with a total estimated budget of BGN 51 million, which will be granted to persons carrying out tour operator and travel agent activities under Art. 26a of the Act on Measures and Actions during the Emergency a situation announced by a decision of the National Assembly of 13 March 2020 and on overcoming the consequences.

The amount of single grants is 4 per cent of their turnover excluding VAT in 2019, disclosed in the financial statement under the Accounting Act, and the aid granted is to compensate losses of tour operators and travel agents for the period from 01.03.2020 to 31.12.2020 Documents for applying for state aid can be submitted from 8 February (Monday). The aid should be used as a priority to reimburse amounts to passengers whose packages have been cancelled due to COVID-19 for the same period.

Eligible applicants are undertakings operating as tour operators or travel agents registered in accordance with Section I, Chapter Seventh of the Tourism Act and registered in the National Tourist Register, which, at the time of application for the aid, have concluded valid insurance “Responsibility of the Tour Operator” in accordance with Art. 97 of the Tourism Act.

This measure is part of a comprehensive package of measures and aims to counter the liquidity shortages faced by companies due to COVID-19.