The caretaker government has activated the first of a series of measures to mitigate the economic consequences of the crisis in the Middle East, with financial assistance being directed primarily at people with the lowest incomes. This became clear after a key meeting of Prime Minister Andrey Gyurov with representatives of the Bulgarian National Bank (BNB), the Fiscal Council and the banking sector, the government press service announced.
The participants in the meeting united around the need for targeted assistance instead of the practice of mass distribution of funds that has been applied so far. According to experts, the pouring of the so-called "helicopter money" in the economy directly feeds inflationary expectations in the country.
Andrey Gyurov: "Our goal is to present our vision for the most appropriate package of measures in an open dialogue with representatives of business and financial circles to avoid the closure of enterprises and the layoff of workers."
The Prime Minister emphasized that the state must be prepared for different scenarios.
At the moment, the domestic banking sector is not suffering direct negative consequences from the conflict in the Middle East, financial experts confirmed. However, the BNB is already developing macroeconomic forecasts based on different options for the development of the crisis.
According to the director of the "Economic Research and Forecasts" at the BNB Viktor Iliev well-targeted steps in fiscal policy can successfully limit the secondary effects on the economy.
The Chairman of the Fiscal Council Simeon Dyankov supported the preparation of various scenarios by the government to ensure flexibility, but categorically rejected the idea of changes in the tax system.
Simeon Dyankov: "It is especially useful that the measures are not capricious, and at the moment it would be a mistake to target excise duties and VAT, because once made, they do not allow for flexibility."
The meeting was also attended by the Chief Director of the "Issue" Department at the BNB Georgi Chanev and the General Secretary of the Association of Banks in Bulgaria James Yolovski.