3.2 billion euros under the European SAFE mechanism are an opportunity for Bulgaria to accelerate the acquisition of defense capabilities and develop the national defense industry. This was stated by Defense Minister Dimitar Stoyanov at the opening of the “Hemus 2026“ exhibition in Plovdiv.
“This will provide an opportunity for accelerated acquisition of defense capabilities and development of the national defense industry through joint projects and joint procurements“, Stoyanov pointed out. He stated that the funds must be used transparently, effectively and responsibly.
Nine modernization projects
The national plan under SAFE includes nine key projects for the development of the Bulgarian armed forces. These include the acquisition of new three-coordinate radars, ground-based air and missile defense systems, 155-mm howitzers and a multiple launch rocket system with increased mobility.
The plan also provides for systems for protection against unmanned aerial vehicles, electronic warfare capabilities, 155-mm ammunition, RBS 15 Mk anti-ship missiles and VL MICA anti-aircraft missiles. A project for the development of the transport support of the Bulgarian Army is also included.
The projects are related to the implementation of the “Capability Goals 2025” package, agreed for Bulgaria within the framework of its NATO membership. Some of them are also included in the Defense Investment Program until 2032.
The first payment has already been received
On July 30, the National Assembly ratified the SAFE loan agreement between the European Union and Bulgaria, as well as the operational arrangements with the European Commission. The amount of financial assistance is up to EUR 3,261,700,000.
The loan has a grace period of up to 10 years and a repayment period of up to 45 years. Supplies related to SAFE projects are exempt from value added tax.
Bulgaria received the first payment under the mechanism on August 28. The amount is 489.3 million euros, which represents 15% of the agreed loan.
The deliveries under the projects must be completed by the end of 2030. On October 7, the Council of Ministers approved the acquisition of five more anti-aircraft missile systems under SAFE.
Sources: bta.bg