Prime Minister Announces New Aid package for businesses

On November 17, 2025, Prime Minister Dimitar Glavchev announced a significant new aid package designed to support bulgarian businesses facing economic challenges. The package, totaling BGN 1.2 billion, aims to provide crucial financial assistance adn stimulate economic growth.

Key Components of the Aid Package

• Grants for Small and Medium-Sized Enterprises (smes): BGN 500 million will be allocated as direct grants to SMEs. These grants will help businesses cover operational costs, invest in modernization, and retain employees. Eligibility criteria will be announced shortly by the Ministry of Economy and industry.
• Loan Guarantees: A BGN 300 million fund will provide loan guarantees to banks, encouraging them to offer more favorable lending terms to businesses. This will improve access to credit, notably for companies with limited collateral.
• Tax Relief Measures: The government will implement temporary tax relief measures, including a reduction in social security contributions for businesses in sectors heavily impacted by the economic downturn. Details regarding specific sectors and contribution reductions will be released next week.
• Support for Innovation and Digitalization: BGN 200 million will be invested in programs supporting innovation and digitalization within businesses.This includes funding for research and advancement, training programs, and the adoption of new technologies.
• Wage Subsidies: BGN 200 million is earmarked for wage subsidies, designed to help businesses maintain employment levels during difficult times.

Prime MinisterS Statement

“This aid package is a direct response to the challenges faced by our businesses,” stated Prime Minister Glavchev during a press conference. “We understand the difficulties they are experiencing, and we are committed to providing the necessary support to help them overcome these obstacles and continue to contribute to the Bulgarian economy. We believe this comprehensive package will provide a much-needed boost and pave the way for sustainable economic recovery.”

Reactions and Future Outlook

Business organizations have generally welcomed the announcement, expressing optimism about the potential positive impact of the aid package. Though, some have called for greater clarity on the application process and eligibility criteria. The government has assured businesses that detailed details will be readily available thru the Ministry of economy and Industry’s website and regional offices.

the effectiveness of the aid package will be closely monitored in the coming months. The government plans to assess the impact of the measures and make adjustments as needed to ensure they are achieving their intended goals. This initiative represents a significant step towards supporting Bulgarian businesses and fostering a more resilient economy.