BGN 1.2 billion from the Recovery and Sustainability Plan has been delayed for the second year already

There are 4 main reasons why the second tranche of Bulgaria's money under the Recovery Plan is being delayed. This is what the economist Georgi Vuldjev said on Radio "Focus".

"Every payment is tied to reforms. We have probably implemented almost all 58 changes, but 4 we have not succeeded - Law on personal bankruptcy, the National Health Strategy 2021-2030, the regulatory framework for reporting irregularities is missing, what and reducing the share of contracts possible to a single bidder in connection with the work of the Public Procurement Agency", said Vuldjev.

According to him, Bulgaria has received BGN 2.7 billion under the first tranche, but BGN 1.2 billion - the second - has been delayed for over a year. "These reforms are quite important, especially the first 3. We are the only European country without a personal bankruptcy law. A year ago, a bill was submitted to the National Assembly, but no agreement was reached on its specifics until today," the economist stressed.

It is logical to have such a legislative framework - to regulate the institution of personal bankruptcy is important in the context of the modern financial system. "The lobbies are worried about this - they are not completely against different creditors, but they want to guarantee their rights at any cost. In 2020, Borisov's cabinet voted for an absolute statute of limitations on all personal debts of natural persons of 10 years. It came into force in 2021. From 2031 onwards, according to current laws, if an individual has outstanding debts with a statute of limitations of more than 10 years, they are automatically waived. However, this encourages people to hide from their creditors," Vulzhdev is emphatic.

"We are quite late, according to the original plan all the money was supposed to be received by mid-2026, but we are running late - we will also miss the fifth payment in June. In view of the political situation, I do not see how the parties in the Parliament will be able to find a compromise on the necessary reforms at the moment. Things are moving towards receiving the second payment at the earliest this fall," the economist emphasized.

Slowing down money is relevant to our economic growth. "This year, it will be quite dependent on public investments, and if we don't get financing under the Plan, it drags all growth down, which is bad for the state treasury. The strongest focus of finance in the document is energy. There, the money for absorption is 38%, one third of the money under the Plan should be directed to building a low-carbon economy", Georgi Vuldjev explained the topic.