Bulgaria Prepares for ‘Worst-Case Economic Scenario’

Finance Minister Vladislav Goranov told a press conference on Tuesday that in the worst-case scenario, the Bulgarian economy could shrink by three per cent in 2020 due to the impact of the coronavirus pandemic.

"If the period of isolation continues for three months in total, our economy will recover by the end of 2021," Goranov said.

"There are also less negative outcomes, like maintaining 0.7 per cent growth or a zero growth," he added.

On Monday evening, Prime Minister Boyko Borissov said that a budget deficit of 3.5 billion levs (around 1,789 billion euros) is expected this year.

Goranov said the deficit will be covered through taking loans and assured the public that tax rises are not being considered.

On March 29, the government announced plans to revise its budget for 2020 and take on billions in debt. Later this week, further measures will be announced.

The government's current financial aid package involves 4.5 billion levs (around 2,299 billion euro) in spending aimed at shoring up the economy. Five hundred million levs (256 million euros) will go to the healthcare system, the Ministry of Foreign Affairs and the military. The Bulgarian national bank will receive the same amount.

Two hundred million levs (102 million euros) will be spent on interest-free loans. People who are currently on unpaid leave will receive 1,500 levs (767 euros), while medical workers, police officers and transport workers will be compensated for their extra work.

Meanwhile, 9,900 people have registered as unemployed since restrictive measure were imposed to deal with the spread of the coronavirus, Minister of Labour and Social Policy Denitsa Sacheva said on Monday - a 6.3 per cent increase in unemployment.

According to a...