The transport sector is key to the country's economy because it is a very important component of the chain of economic activities. That is why a large part of the government's anti-inflation support measures are aimed at him. Minister of Transport and Communications Korman Ismailov said at a briefing after a meeting with industry organizations in freight and bus transport. It was attended by Minister of Economy and Industry Irina Shtonova, Deputy Minister of Finance Stanimir Mihaylov, as well as representatives of the Ministry of Regional Development and Public Works, the Bulgarian Export Insurance Agency and others.
"Fuels are a very large cost item for the entire transport sector, which in turn determines the everyday life of the ordinary person, business and trade," Korman Ismailov said. He recalled that 2 weeks ago, additional funding of EUR 11.4 million was announced to subsidize urban transport in the country. The goal was to avoid disruption of bus services in large municipalities as a result of the increase in fuel prices. "Tomorrow at the meeting of the Council of Ministers, an additional EUR 18 million subsidy for long-distance bus lines is expected to be adopted, which is another anti-inflationary measure," the minister added. An increase in the funds for compensating student transport by EUR 2.5 million is also envisaged. This is especially important for small settlements where there are no schools and children travel to another settlement.
"Two weeks ago, I made a commitment to the industry to reduce the administrative burden for the services of EA Automobile Administration, which directly affect the daily work of the sector, and we already have a plan to ease procedures and shorten deadlines. Following the information on price movements, we remain in a regime of constant dialogue and meetings with all organizations in the industry, "Minister Ismayilov added. According to him, the Agency is launching an increased control of unregulated bus transport. "This also directly affects the electoral process. Intensive checks are forthcoming on entry and exit from the country, whether all carriers have the necessary documents for the activity they carry out and whether they comply with safety requirements. I appeal to the carriers to comply with the rules, "Korman Ismailov said.
“The transport sector is key to our economy and the goal of all measures is to give businesses a real breather and ensure sustainability in a period of uncertainty," Minister of Economy and Industry Irina Shtonova said. She presented the measures developed in recent days by the Bulgarian Export Insurance Agency, which provide easier access to financing.
Road transport companies will be able to postpone their lease obligations until the end of 2026 under one of BAEZ’s (Bulgarian Export Insurance Agency) new measures to support transport companies. "According to the data of the Bulgarian National Bank, the total volume of leasing transactions for trucks and light commercial vehicles amounts to approximately EUR 750 million, and the deferred payments by the end of the year could free up about EUR 100 million of resources for the business," Shtonova said. In her words, this will free up liquid funds to bear other costs in conditions of uncertainty, including salaries, and only interest will be due for the deferral period. "Thus, the cost of leasing will be significantly reduced – up to about 5-10% of the due contributions," she explained.
BAEZ has launched two more programs in support of road transport – in support of exports and small and medium-sized companies in the sector. It will be possible to insure working capital loans, whereby the state assumes part of the risk in international transactions. At the same time, there will be an opportunity for bank financing of small and medium-sized enterprises with guarantees from the state, which reduce the requirement for self-participation by the business from the standard 30% to about 15%. In this way, more companies will have access to the necessary working capital.
Minister Shtonova also presented some of the measures taken by the Ministry of Regional Development and Public Works. The European Commission has requested a notification of state aid in the amount of EUR 50 million, and after approval, the funds will be distributed on the basis of the tolls paid by the companies last year. At the same time, the planned increase in toll fees, which was supposed to come in on April 1, is postponed.
"The package of measures to support the transport sector discussed today exceeds EUR 100 million," Deputy Minister of Finance Stanimir Mihaylov said. Part of the funds will be given in the form of direct support, and the rest - as indirect forms of assistance. "The individual measures are aimed at different groups of carriers, which was our main goal," Mihaylov explained.
