https://www.bta.bg/en/news/economy/rss Sat, 04 Jul 2026 05:19:23 +0300 en hourly 1 https://www.bta.bg/en/news/economy/1160930-transport-minister-orders-additional-measures-against-overloaded-trucks-entering https://www.bta.bg/en/news/economy/1160930-transport-minister-orders-additional-measures-against-overloaded-trucks-entering Fri, 03 Jul 2026 20:19:44 +0300 Minister of Transport and Communications Georgi Peev has sent a letter to all port operators in Bulgaria instructing them to take additional measures to prevent overloaded trucks from entering and leaving the ports. The letter was prompted by road traffic accidents involving vehicles that left the ports with loads exceeding the maximum permissible weight, the Transport Ministry said in a press release Friday.  The Minister calls on port operators to implement measures to prevent overloaded trucks from entering the national and municipal road networks. Under the Road Transport Act, responsibility for ensuring that a vehicle does not exceed its maximum permissible weight lies with the shipper or the person performing the loading. Upon detecting violations, port operators must notify the Automobile Administration Executive Agency, which will take action within the scope of its authority, including imposing administrative penalties on shippers or the persons who loaded the vehicles. Earlier on Friday, Transport Minister Peev, his deputy Anna Natova, representatives of state and private port operators, as well as industry organizations from the maritime and river transport sectors discussed measures to enhance the competitiveness of Bulgarian sea and river ports and their role in the development of the strategic Trans-Caspian International Transport Route. Economy Dimitrina Solakova Zhenya Ilcheva https://www.bta.bg/en/news/economy/1160764-housing-market-enters-anticipated-stabilization-phase-address-real-estate-rese https://www.bta.bg/en/news/economy/1160764-housing-market-enters-anticipated-stabilization-phase-address-real-estate-rese Fri, 03 Jul 2026 16:58:00 +0300 The housing market has entered the anticipated stabilization phase, but is far from the expected dramatic upheaval, according to research by Address Real Estate received by BTA on Friday. Data from the Registry Agency for the second quarter show a decline in transactions compared to the record levels of the pre-euro 2025, however, the second quarter saw an 18% increase in Sofia, Plovdiv, Varna, and Burgas compared to the first quarter of 2026. According to Gergana Tenekedzhieva, Executive Director of Address, this signals a natural market trend rather than the beginning of a market crash. Tenekedzhieva stated: "Many forecasts at the beginning of 2026 claimed that the second quarter would be even weaker than the first and that we would witness an unprecedented crash and the bursting of a bubble, none of which sounded realistic for a market that had been active, albeit at record levels in recent years. And that is exactly what happened – the major upheaval that many had speculated about did not materialize. The data from the second quarter proves it. Yes, the market is entering a more moderate phase, but this is the only healthy development following the boom of 2023-2025. At the same time, activity in April, May, and June compared to the beginning of the year shows a proportional trend identical to that of previous years. Transactions are being concluded at a rate just as intense relative to the first quarter as in previous years." The head of Address reported that there are statistics showing a lower volume than in 2019, which applies to the entire country. However, these figures do not present an objective picture of the market. In the four major cities, the situation is different. Sofia and Burgas in particular are at 2023 levels, which was an exceptionally active year for the market. Tenekedzhieva added: "The housing market should not be viewed in isolation – it is a function of people's incomes as well as mortgages. Sofia, Varna, Plovdiv, and Burgas have always been more active, and transactions in these cities are indicative. Internal migration significantly affects business and, consequently, the population's purchasing power." According to the company, the decline of about 15% in the number of buyers began as early as 2025. It stated: "People without sufficient savings for a down payment adopted a more passive stance in 2025, and today, we are seeing the real effect of that behaviour. Mortgages, however, continue to be a significant incentive. Interest rates are low, and the banks' requirements are reasonable, not beyond the reach of people with stable incomes. About 60% of transactions over the past three months were financed with a mortgage, and in Sofia, that share has already reached 70%." Tenekedzhieva reported that when a long-term downturn occurs, a larger share of the buyers are likely to be speculators. Data from the last 6 months, however, suggest that the most active buyers are people who need a home. Investors looking to rent out properties, as well as buyers with savings, also remain a stable presence in the market. The head of Address concluded that basic living needs and disposable income are major catalysts for a transaction. Discounts, which until recently played no role in the market, are now a factor in transactions, as about 54% of sellers over the past 6 months have compromised on price. However, the discount tends to be insubstantial, ranging from 2 to 10% of the asking price. The 10% threshold is reached only in cases of above-market or incorrectly set prices In the rental market, the rent levels sought by tenants are lower than they were a year ago. The reason is that rising daily expenses are driving people to seek cost savings, and rent is the area where they most often seek to compromise. Economy Nikolay Zabov Ekaterina Toteva https://www.bta.bg/en/news/economy/1160633-wizz-air-expands-sofia-operations-with-new-aircraft-and-two-direct-flights https://www.bta.bg/en/news/economy/1160633-wizz-air-expands-sofia-operations-with-new-aircraft-and-two-direct-flights Fri, 03 Jul 2026 14:46:53 +0300 Low-cost airline Wizz Air has based its eighth aircraft at Vasil Levski Sofia Airport and launched two new direct routes from Bulgaria's main international airport to Budapest and Rhodes, the carrier's press office reported. The new Airbus A321neo increases the total number of Wizz Air planes based across Bulgaria to 11. The carrier said the expansion of its Sofia base will create 40 direct and around 350 indirect jobs, while also supporting the growth of inbound tourism and the local economy. Wizz Air noted that, with the addition of the new routes, it now operates 71 routes from Bulgaria to 20 countries. During the 2026 summer holiday season, the carrier is offering 2.1 million seats from Sofia, representing a 61% increase compared with the same period in 2025. Tickets for flights to Budapest and Rhodes are now on sale. Economy Valentin Evstatiev Zhenya Ilcheva https://www.bta.bg/en/news/economy/1160608-port-competitiveness-and-middle-corridor-development-in-focus-of-working-meeting https://www.bta.bg/en/news/economy/1160608-port-competitiveness-and-middle-corridor-development-in-focus-of-working-meeting Fri, 03 Jul 2026 14:23:18 +0300 The competitiveness of Bulgaria's sea and river harbours and their role in the development of the strategic Middle Corridor from Southeast Asia and China to Europe were discussed at a working meeting at the Transport and Communications Ministry in Sofia, the ministry's press office reported on Friday. The meeting was attended by Transport and Communications Minister Georgi Peev and Deputy Minister Anna Natova, representatives of state-owned and private port operators, and industry associations from the maritime and inland waterway transport sectors. Speakers outlined the main challenges facing the sector, including underdeveloped road and railway infrastructure, an outdated regulatory framework and the need for a new port governance model. The ministry noted that no systemic problems affecting navigation along the Bulgarian stretch of the Danube River has been identified over the past four years. Peev said the goal is to prepare a long-term development plan for the sector based on clear economic priorities that will strengthen Bulgaria's position on the international transport map. The ministry added that the government intends to raise the issue of increased transit fees for passage through the Bosphorus during upcoming intergovernmental negotiations with Turkiye. According to the ministry, Bulgaria will emphasize its key role in Turkiye's overland and rail exports to Europe and Ankara's interest in developing new railway links and alternative transport routes. The Bulgarian Chamber of Shipping, the Burgas Maritime Association and Danube port operators are expected to submit proposals on the sector's most pressing problems and possible solutions to the Transport and Communications Ministry within two weeks, the press release said. The proposals will be used in drafting the future strategy for the development of waterborne transport, planned legislative amendments and the sector's master development plans. The Middle Corridor, also called the Trans-Caspian International Transport Route, had been among the topics which Peev discussed during the Ukraine Recovery Conference in Gdansk, Poland last week. Economy Valentin Evstatiev https://www.bta.bg/en/news/economy/1160495-sofia-municipality-calls-for-revision-of-2026-state-budget-bill-warns-of-risks- https://www.bta.bg/en/news/economy/1160495-sofia-municipality-calls-for-revision-of-2026-state-budget-bill-warns-of-risks- Fri, 03 Jul 2026 12:45:32 +0300 Sofia Municipality has called for a revision of the government's proposed 2026 state budget, urging the government to better address the needs of citizens and businesses, according to a municipal press release commenting on the draft budget law. The municipality said it was seeking adequate funding for municipal infrastructure projects, public transport, the establishment of a dedicated fund for the construction of new single-shift schools, financing for the Sofia Ring Road, and the National Children's Hospital. It warned that the stability of critical public services used by nearly two million Bulgarian citizens could be put at risk and voiced concern over the proposed changes to the financing model for municipal projects. According to the municipality, Parliament had previously approved a specific list of projects and their allocated funding, ensuring transparency and public oversight. Under the proposed system, however, the Ministry of Regional Development and Public Works would be given sole authority to select projects from 2025's approved list. The draft legislation contains no selection criteria or deadlines governing the ministry's decisions, creating what the municipality described as a real risk of subjective decision-making and arbitrariness. The municipality said it had already submitted several requests for funding agreements to the Ministry of Regional Development and Public Works, none of which had seen any progress. It warned that the new mechanism raised concerns that Sofia could be disadvantaged during the project selection process. Officials also voiced concern that the proposed budget considered only funding needs for 2025, while failing to account for financing requirements in 2026 and 2027, increasing the risk of incomplete funding for major projects. Sofia Municipality also said that more than 40% of Bulgaria's gross domestic product is generated in the capital, arguing that adequate support for Sofia is essential to the country's overall economic performance. On Thursday, the municipality announced that it had submitted an official position to Prime Minister Rumen Radev and Finance Minister Galab Donev, calling for an urgent revision of the budget framework to avert a potential crisis in Sofia's public transport system. According to the municipality, the draft 2026 state budget does not provide the additional EUR 25.4 million needed to ensure the continued operation of the capital's public transport network. Economy Sofia Gospodinova Konstantin Karagyozov https://www.bta.bg/en/news/economy/1160293-pm-ministers-of-finance-interior-defence-culture-energy-agriculture-envir https://www.bta.bg/en/news/economy/1160293-pm-ministers-of-finance-interior-defence-culture-energy-agriculture-envir Fri, 03 Jul 2026 08:42:00 +0300 Prime Minister Rumen Radev, Deputy Prime Ministers Ivo Hristov and Atanas Pekanov, as well as the ministers of finance interior, defence, culture, energy, agriculture, environment and regional development will attend Parliament's Question Time on Friday, the National Assembly's website said. The agenda also includes a vote by MPs on the second reading of the amendments to the Ministry of Interior Act. Economy Momchil Rusev https://www.bta.bg/en/news/economy/1159998-less-than-half-of-bulgaria-s-state-railway-company-s-passenger-carriages-are-air https://www.bta.bg/en/news/economy/1159998-less-than-half-of-bulgaria-s-state-railway-company-s-passenger-carriages-are-air Thu, 02 Jul 2026 17:02:00 +0300 Fewer than half of the 266 passenger carriages operated by BDZ, Bulgaria's state railway company, are air-conditioned, Transport and Communications Minister Georgi Peev said during a parliamentary question-and-answer session before the Transport and Communications Committee on Thursday.  Responding to a question from Movement for Rights and Freedoms (MRF) MP Tanser Ibryam Beyti, Peev said the railway operator has 266 passenger carriages, although about 285 are needed to ensure normal rail passenger services. More than half of the fleet was manufactured in the 1970s and 1980s. The minister said the problems facing the railway sector are systemic and cannot be resolved through one-off personnel changes. According to him, a long-term programme is needed to modernize the railway infrastructure, renew the rolling stock and introduce modern safety systems. Peev noted that some of the carriages have undergone repairs and maintenance of their air-conditioning systems. However, he said the systems were designed to operate at outdoor temperatures of up to 35C, making them less effective during the current heatwave. The first new trains are expected to enter service no earlier than September, after completing the required testing and certification procedures, the minister said. Peev also stressed that lasting improvements to rail transport would require investment not only in new rolling stock and infrastructure, but also in improving the motivation and working conditions of railway employees. Economy Yoanna Vodenova Zhenya Ilcheva https://www.bta.bg/en/news/world/1159918-dubai-based-airline-solitair-launches-cargo-services-to-sofia-marks-first-desti https://www.bta.bg/en/news/world/1159918-dubai-based-airline-solitair-launches-cargo-services-to-sofia-marks-first-desti Thu, 02 Jul 2026 16:36:15 +0300 Dubai-based cargo airline SolitAir has launched cargo services to Sofia, marking its first destination within the European Union, the carrier reported in a social media post. The route connecting Dubai's Al Maktoum International Airport and Sofia's Vasil Levski Airport provides direct access to Southeast Europe and connects SolitAir's existing network, which spans the Middle East, Africa, and Asia, with the EU market. The launch is made possible by the Belgian Civil Aviation Authority, which authorizes the company to transport cargo and mail into the EU and the European Economic Area. SolitAir founder and CEO Hamdi Osman said, as quoted by International Transport Journal, that Sofia was not simply a new dot on the map, but the first European link in a network the company had built city by city across some of the world's most commercially vital, yet underserved, trade routes. Sofia occupies a strategic position at the crossroads of Central, Eastern and Southeastern Europe, with established road and rail links into the EU's wider single market. The city has developed into a regional logistics and manufacturing base, with growing demand for time-critical air freight spanning e-commerce, automotive components, pharmaceuticals and perishables - sectors that align closely with SolitAir's existing cargo specializations, the company reported. The new route enables European freight forwarders, integrators, and e-commerce companies to gain direct access to the carrier's expanded network, which also includes the Indian subcontinent, Central Asian countries, and China. SolitAir operates a fleet of seven Boeing 737-800 BCF freighters, each with 20-tonne cargo capacity, and is targeting fleet growth to 20 aircrafts. World Kristina Ivanova Iliyan Tsveyn https://www.bta.bg/en/news/economy/1159785-bulgaria-records-eu-s-lowest-unemployment-rate-for-sixth-consecutive-month-in-ma https://www.bta.bg/en/news/economy/1159785-bulgaria-records-eu-s-lowest-unemployment-rate-for-sixth-consecutive-month-in-ma Thu, 02 Jul 2026 14:55:32 +0300 Bulgaria remained the European Union's country with the lowest unemployment rate for a sixth consecutive month in May 2026, despite a slight increase of 0.1 percentage points from April to 2.9%, Eurostat said on Thursday. The number of unemployed people in Bulgaria rose to approximately 88,000 in May from 86,000 in April. In May 2025, around 105,000 people were unemployed, corresponding to an unemployment rate of 3.5%. Among EU Member States, the lowest unemployment rates in May were recorded in Bulgaria (2.9%), Czechia (2.9%), Cyprus (3.1%) and Poland (3.1%). The highest rates were registered in Finland (10.8%), Spain (10.3%), Sweden (8.8%) and France (8.2%). Youth unemployment in Bulgaria increased to 11.5% in May from 11.1% in April, corresponding to 14,000 unemployed people under the age of 25. In the same month 2025, the youth unemployment rate stood at 14%, equivalent to 17,000 unemployed young people. Across the EU, 2.918 million people under the age of 25 were unemployed in May 2026, including 2.313 million in the euro area. The youth unemployment rate stood at 15.2% in the EU, up by 0.1 percentage points from April, while it remained unchanged at 14.7% in the euro area. Compared with April 2026, the number of unemployed young people increased by 18,000 across the EU and decreased by 12,000 in the euro area. Under Eurostat's methodology, the unemployment rate is calculated as the share of unemployed persons aged 15 to 74 in the labour force. Unemployed persons are those without work who are available to start a job within the next two weeks and have actively sought employment during the previous four weeks. Economy Veneta Litkova Iliyan Tsveyn https://www.bta.bg/en/news/economy/1159790-q1-2026-tourism-nights-spent-in-eu-booked-via-platforms-from-bulgaria-up-8-5- https://www.bta.bg/en/news/economy/1159790-q1-2026-tourism-nights-spent-in-eu-booked-via-platforms-from-bulgaria-up-8-5- Thu, 02 Jul 2026 14:44:03 +0300 Between January and March 2026, guests from Bulgaria spent 911,656 nights in short-term rental accommodation in the EU, booked through Airbnb, Booking or Expedia. This is an 8.5% increase compared with the first quarter of 2025, according to data published on the website of the Statistical Office of the European Union (Eurostat) on Thursday. Across the EU, the increase was 9.7%. The overall number of nights spent by EU guests in short-term rental accommodation within the bloc, booked via any of the three online platforms, was 144.3 million in the first quarter of 2026. Compared with January-March 2024, the increase was 16.6%. The most popular regions for short-term rental accommodation booked via online platforms in the last quarter of 2025 were Andalucia (9.9 million nights) and the Canarias (8.2 million) in Spain and Ile-de-France (7.2 million) in France.  The 10 most popular tourist regions were all located in just 3 EU countries: 5 in Spain, 3 in France and 2 in Italy. Economy Valentin Evstatiev Boycho Popov https://www.bta.bg/en/news/economy/1159799-bulgaria-ranks-third-in-eu-in-annual-house-price-growth https://www.bta.bg/en/news/economy/1159799-bulgaria-ranks-third-in-eu-in-annual-house-price-growth Thu, 02 Jul 2026 14:32:08 +0300 House prices in Bulgaria increased by 14.8% year-on-year in the first quarter of 2026, marking the third-highest growth rate among European Union countries, after Portugal and Slovakia. This is according to data published on Thursday by the European statistical office Eurostat. In the euro area, house prices increased by 4.7% compared with the same period last year, while across the EU as a whole they rose by 5.1%. In the fourth quarter of 2025, the annual growth rates were 5.1% and 5.4%, respectively. On a quarterly basis, compared with the last three months of 2025, house prices increased by 1.0% in the euro area and by 1.2% in the EU. Among EU member states for which data are available, only Finland recorded an annual decline in housing prices, down 2.0%. The highest increases were recorded in Portugal (17.8%), followed by Bulgaria (14.8%) and Slovakia (14.4%). On a quarterly basis, house prices fell in Belgium and Finland (-0.8%), France (-0.6%), and Hungary (-0.5%). The strongest increases were reported in Bulgaria (6.2%), Portugal (3.8%), and Slovakia (3.6%). According to Eurostat, in the first quarter of 2026, rents in the EU increased by 3.0% year-on-year and by 0.7% compared with the previous quarter. When comparing the first quarter of 2026 with the average level for 2025, house prices increased faster than rents in 19 EU member states. The largest increases in house prices were recorded in Portugal (10.3%), Bulgaria (9.4%), and Slovakia (9.1%), while declines were observed only in France (-0.5%) and Finland (-1.8%). Over the same period, rents increased in all EU member states except Slovenia, where they fell by 0.9%, and Finland, where they remained unchanged. The strongest increases in rents were recorded in Croatia (21.9%), followed by Bulgaria (6.4%) and Greece (5.0%). Economy Boycho Popov Petya Petrova https://www.bta.bg/en/news/economy/1159706-central-bank-governor-draft-2026-budget-deepens-negative-fiscal-trend https://www.bta.bg/en/news/economy/1159706-central-bank-governor-draft-2026-budget-deepens-negative-fiscal-trend Thu, 02 Jul 2026 13:34:47 +0300 Bulgarian National Bank (BNB) Governor Dimitar Radev said Thursday that the proposed 2026 state budget, which envisages a deficit of 5.7%, deepens rather than reverses the negative fiscal trend that has developed since 2020. He was attending the European Central Bank's annual forum in Sintra, Portugal. Radev said the trend had accumulated under successive governments and noted that, with Bulgaria already subject to an excessive deficit procedure, such fiscal signals carried even greater weight. The BNB Governor spoke about the forum, the draft 2026 budget, Bulgaria's first six months as a member of the euro area, the suspension by an EU Member State of the approval procedure for the design of Bulgaria's first commemorative euro coin, and the ECB's monetary policy framework. According to Radev, the BNB's macroeconomic forecast, which projects slower economic growth and higher inflation, does not in itself complicate fiscal policy but reflects a less favourable external environment affecting most European economies, as well as existing domestic imbalances. He said Bulgaria's euro area membership had already begun to generate economic benefits. The transition had been smooth and well organized thanks to the long-term preparations made by the BNB and the banking sector. He pointed to growing investor interest, improved prospects for the capital market and better access to financing. Radev also welcomed the decision by several of Bulgaria's leading banks to continue offering free lev-to-euro exchange services after July 1. Radev stressed that euro area membership does not automatically deliver all potential benefits. Going forward, national policies, including improvements to the investment environment and the stabilization of public finances, would be crucial, he added. Commenting on the main theme of the 2026 ECB forum, dedicated to Europe's economic future and innovation, Radev said the strongest message to emerge was the growing need for Europe to act more quickly. He noted that the United States continued to widen its lead by investing more and converting new technologies into economic growth more rapidly. "Europe is not lagging behind in creating innovation. The problem is that it is much slower in turning innovation into a competitive advantage," Radev said. He added that closing this gap would require greater investment, a better-functioning capital market and faster adoption of new technologies across the economy. Radev also commented on ECB President Christine Lagarde's announcement of a revised monetary policy approach, under which interest rate decisions will be based on incoming data and enhanced analytical methods at each Governing Council meeting rather than on a predetermined policy path. He described the shift as a natural response to a changing global environment marked by geopolitical conflicts, trade tensions, energy shocks and supply chain disruptions. "In such an environment, traditional models have a much shorter horizon of reliability," Radev said. He added that monetary policy decisions would increasingly be guided by current data and risk developments rather than by pre-announced trajectories. Asked about the suspension by an EU Member State of the approval procedure for the design of Bulgaria's first commemorative euro coin dedicated to the Bulgarian alphabet, Radev said the BNB's position remained unchanged. "The central bank has fulfilled all its responsibilities in the process in full compliance with the applicable legal and procedural requirements," he said. Economy Veneta Litkova BTA Special Correspodent Spas Stambolski https://www.bta.bg/en/news/economy/1159375-finance-ministry-expects-eur-2-4-bln-government-deficit-by-end-june https://www.bta.bg/en/news/economy/1159375-finance-ministry-expects-eur-2-4-bln-government-deficit-by-end-june Wed, 01 Jul 2026 20:03:42 +0300 The Finance Ministry expects a budget deficit of EUR 2.4 billion on a cash basis by the end of June 2026, according to preliminary data and estimates published on the Ministry's website on Wednesday. According to preliminary data and estimates, the Consolidated Fiscal Programme's (CFP) deficit as of the end of June will amount to 1.9% of projected GDP. By comparison, a deficit of EUR 1.7 billion or 1.5% of GDP, was reported in the first half of 2025. The Ministry of Finance noted that the improvement in the budget balance in June compared to the previous month is primarily due to one-time revenue factors for the year. These include higher corporate tax revenues related to the June 30 deadline for filing and paying taxes under the Corporate Income Tax Act, as well as the portion of the Bulgarian National Bank's 2025 revenue surplus over expenditures that was transferred to the State budget. Revenues, grants, and donations under the CFP are expected to reach EUR 21.6 billion by the end of June, which is EUR 1.6 billion, or 8.2%, more than in the same period last year. The main contributors to the increase were tax revenues, which rose by EUR 1.5 billion, or 9.1%, as well as proceeds from aid and donations, which increased by EUR 0.4 billion. Non-tax revenues were EUR 0.3 billion lower than in the first half of 2025, mainly due to lower dividend revenues from state-owned enterprises following the payment of an interim dividend in 2025. Expenditures under the CFP, including Bulgaria's contribution to the European Union budget, are expected to reach EUR 24 billion by the end of June, compared with EUR 21.7 billion a year earlier. Economy Nikolay Zabov https://www.bta.bg/en/news/economy/1159381-financial-regulator-refers-dallbogg-insurer-to-prosecutors-over-asset-sale https://www.bta.bg/en/news/economy/1159381-financial-regulator-refers-dallbogg-insurer-to-prosecutors-over-asset-sale Wed, 01 Jul 2026 19:52:54 +0300 Bulgaria's Financial Supervision Commission (FSC) has referred to the prosecution service several asset sale agreements involving insurer DallBogg: Life and Health, whose operating licence has been revoked, saying the transactions could harm policyholders' interests and diminish the company's assets. Speaking at a news briefing in Sofia, FSC Chairman Vasil Golemanski said the regulator had received notifications about agreements to sell assets that had not been disclosed in the insurer's restructuring plan submitted on May 11. Among them was a contract dated December 16, 2025, for the sale of DallBogg Pension Insurance Company, a wholly owned subsidiary of the insurer, for nearly EUR 11 million. Golemanski said the transfer was never completed because the FSC had barred the insurer from disposing of assets on April 2, but described the existence of the agreement as "alarming" and said it had been reported to prosecutors. The regulator has also been notified of court proceedings seeking to finalize preliminary agreements for the sale of three properties in Busmantsi, Veliko Tarnovo and Vratsa. The agreements, signed at the end of March, became known only after the buyers sought court approval to make them final, according to the FSC. The National Revenue Agency has also been notified after cash deposits linked to the deals were allegedly paid in breach of Bulgaria's legal limits on cash transactions. FSC Deputy Chairman Plamen Danailov said the insurer's active policies are declining by between 8,000 and 10,000 per week because it is prohibited from issuing new policies. He also said court-appointed administrators had found "complete organizational chaos" in the company's operations and client communications but were working to restore normal claims processing. Golemanski stressed that despite the operational difficulties, existing insurance policies remain valid and claims will continue to be paid, adding that both the FSC and the insurer will publish guidance for policyholders on how to submit claims. Economy https://www.bta.bg/en/news/economy/1159345-vienna-institute-raises-bulgaria-s-growth-outlook-through-2028 https://www.bta.bg/en/news/economy/1159345-vienna-institute-raises-bulgaria-s-growth-outlook-through-2028 Wed, 01 Jul 2026 19:19:00 +0300 The Vienna Institute for International Economic Studies (wiiw) expects stronger growth in Bulgaria's economy in 2026 and the following two years than it projected in its spring forecast published at the end of April. This is according to the institute's latest summer economic outlook for the countries of Central, Eastern, and Southeastern Europe, published Wednesday on its official website. Following a GDP growth of 3.1% in 2025, the institute forecasts that Bulgaria's economy will grow by 2.5% in 2026, an improvement over its spring forecast issued at the end of April, which had projected growth of 2.0%. Growth is expected to accelerate to 2.6% in 2027 and 2.8% in 2028. Both forecasts have been revised upward from the previous projections of 2.2% and 2.4%, respectively. Regarding public finances, wiiw expects Bulgaria's budget deficit to narrow from 3.5% of GDP in 2025 to 3.0% in 2026, remaining at that level through 2027 and 2028. This is a considerably more favorable assessment than the spring forecast, which had anticipated the deficit rising to 4.2% of GDP in 2027. According to the Austrian institute, inflation in Bulgaria will reach 5.2% in 2026, before easing to 3.5% in 2027 and 3.0% in 2028. The institute also forecasts a slight increase in unemployment, from 3.5% in 2025 to 3.6% in 2026, and 3.7% in both 2027 and 2028. For the countries of Central, Eastern, and Southeastern Europe as a whole, the Vienna Institute expects economic growth to remain resilient despite the energy price shock caused by the war in the Middle East, which is expected to push inflation higher. According to the analysis, although energy prices are expected to remain above their pre-war levels with Iran, the institute does not anticipate a repeat of the large-scale inflationary shock that followed Russia's invasion of Ukraine. For the eastern member states of the European Union, the institute forecasts average economic growth of 2.2% in 2026, representing an upward revision of 0.1 percentage points compared with the spring forecast. Growth is expected to accelerate to 2.4% in 2027 and 2.7% in 2028. "This outlook depends on the conflict with Iran not escalating again, the Strait of Hormuz remaining open, and energy markets returning to normal," said Richard Grieveson, wiiw Deputy Director and lead author of the summer forecast, as quoted in the report. According to the analysis, the countries of Central and Eastern Europe continue to face structural challenges, including weakening industrial competitiveness, increasing competition from China, and declining foreign direct investment. "Growth in Central and Eastern Europe has been driven primarily by private consumption, which has performed very strongly thanks to robust real wage growth in recent years, although the pace is now slowing," Grieveson explained. Additional support is coming from European Union funding and investment in the defense industry. At the same time, the region's manufacturing sector, which is closely tied to the German economy, continues to struggle because of weak German industrial output and Germany's own structural challenges, he added. The forecast covers the economies of 23 countries in Central, Eastern, and Southeastern Europe: Albania, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Kazakhstan, Kosovo, Latvia, Lithuania, Moldova, Montenegro, North Macedonia, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Turkiye, and Ukraine.  Economy Ilian Tzvein https://www.bta.bg/en/news/economy/1159168-hot-water-heating-prices-increase-by-4-54-on-average-electricity-by-3-05-on- https://www.bta.bg/en/news/economy/1159168-hot-water-heating-prices-increase-by-4-54-on-average-electricity-by-3-05-on- Wed, 01 Jul 2026 17:46:44 +0300 The Energy and Water Regulatory Commission (EWRC) approved the final price for hot water and heating effective July 1. The regulator announced on Wednesday, that the average increase has been limited to 4.54% following the submission of additional data on price-determining factors. The new heat energy prices will be in effect for a one-year period, from July 1, 2026 to June 30, 2027. For customers of Toplofikatsiya Sofia, the approved price is EUR 73.30 per MWh, representing a 5.50% increase. The price for customers of EVN Bulgaria Toplofikatsiya increases by 3.70%, and they will pay EUR 70.93 per MWh.  The price for Veolia Energy Varna customers will increase by 5.19% to EUR 71.63 per MWh. For Toplofikatsiya – Pleven, the approved price has been further adjusted, reducing the increase to 5% instead of the initial 5.54%. Customers of Toplofikatsiya – Burgas will pay a price of EUR 45.50 per MWh, representing a 3.66% increase. For customers of Toplofikatsiya – Vratsa, the price of heating is set at EUR 55.70 per MWh, an increase of 3.59%; for Toplofikatsiya – Veliko Tarnovo, the approved price is EUR 72.49 per MWh, an increase of 4.99%. For Toplofikatsiya-Razgrad, the increase is 4.98%; for Toplofikatsiya - Ruse, 5.02%; for Toplofikatsiya - Pernik, 4.23%; and for Toplofikatsiya - Sliven, 5.18%. Effective July 1, following the regulator’s decision, the price of natural gas will increase by nearly 6%. Electricity prices for households will increase by an average of 3.05% as of July 1, the regulator decided by adopting a resolution on prices in the electricity sector, effective for the next one-year pricing period through June 30, 2027. The adjustment is below the inflation rate, the regulator has planned measures for adverse scenarios and adopted a balanced and conservative approach, the commission said. "The Commission’s goal is for the approved prices to be fair, economically justified, and affordable for household customers. Our aim is to protect households from price spikes and provide them with a clear outlook featuring stable prices for the coming year, which ensures predictability of expenses. In order to ensure price affordability, the regulator refused to comply with some of the requests from the utility companies," EWRC Chair Plamen Mladenovski said. According to him, the average household electricity bill will increase by less than EUR 1. Despite the increase, household electricity prices in Bulgaria remain among the lowest in Europe, according to EWRC. Economy Risida Dimitrova Veselina Yordanova https://www.bta.bg/en/news/bulgaria/1159094-public-debt-management-strategy-approved-eur-1-41-billion-in-2026-eur-2-6-bill https://www.bta.bg/en/news/bulgaria/1159094-public-debt-management-strategy-approved-eur-1-41-billion-in-2026-eur-2-6-bill Wed, 01 Jul 2026 16:17:23 +0300 At its regular meeting, the government approved the 2026–2028 Public Debt Management Strategy, under which outstanding debt due for refinancing amounts to EUR 1.41 billion in 2026, EUR 1.8 billion in 2027, and EUR 2.6 billion in 2028, the government information service said on Wednesday. The remaining portion of the planned new debt financing is justified by the need to finance the projected state budget deficits, including pre-financing under Bulgaria’s Recovery and Resilience Plan and liquidity support, including ensuring the ability to incur debt for specific programmes to capitalize state-owned companies in the water and sanitation, agriculture, regional development, sports, healthcare, energy, economy, industry, and innovation sectors, as well as for other financing operations. The Public Debt Management Strategy, prepared in accordance with the Government Debt Act and the Public Finance Act, sets out the key principles and policy guidelines for managing government debt over the next three years. It also outlines the indicative measures and instruments to be used to achieve the strategy's objectives. The strategy is based on assumptions regarding the government's borrowing needs and public debt parameters under which the draft 2026 State Budget and the Updated Medium-Term Budget Forecast for 2026–2028 were worked out. The government said this is intended to ensure consistency and alignment between the various fiscal policy documents with respect to public debt management. The primary objective of the debt management policy is to secure the funding needed to refinance outstanding debt, finance the planned state budget deficit, cover Bulgaria's national co-financing contribution to projects supported by European Union funds, and maintain adequate government liquidity. In a separate decision, the government approved the funding standards for state-delegated activities for 2026, based on physical and financial performance indicators. The standards were prepared in line with existing legislation and the key assumptions and parameters of the draft 2026 budget. They also incorporate an increase in the minimum monthly wage to EUR 620.20 from January 1, 2026, for employees paid at the minimum wage, the government information service said. Bulgaria Risida Dimitrova Sofia Gospodinova https://www.bta.bg/en/news/economy/1158973-legal-changes-enable-government-securities-issue-for-individual-investors https://www.bta.bg/en/news/economy/1158973-legal-changes-enable-government-securities-issue-for-individual-investors Wed, 01 Jul 2026 15:43:41 +0300 Bulgaria's Parliament on Wednesday passed conclusively revisions to the Public Debt Act moved by Progressive Bulgaria. Part of the provisions that were adopted empower the Minister of Finance to issue government securities intended for acquisition by natural-person investors. Such investors will be exempt from fees and commission charges for the initial acquisition of such securities. The amending law obliges the Finance Ministry to set up and maintain an electronic information system for the sale of government securities to natural persons. The Ministry will have to draft an ordinance establishing the terms and procedure for use of this information system. The amount of government securities that are issued for natural persons must not exceed the maximum amount of the public debt for the relevant year as set by the State Budget Act. Based on a Council of Ministers decision, the Minister of Finance may appoint a representative of the State at meetings and drafting of written resolutions upon decision-making by government securities holders, the lawmakers resolved. The government will adopt a decision appointing a calculation agent to calculate the requirement for the aggregate nominal value of government securities in circulation when their initially agreed terms are modified. Government securities distributors will be obliged to provide services for trading in such securities to natural persons on a primary and secondary market and to maintain firm quotes on a trading venue, at least one of which is a regulated market. The Minister of Finance is to conclude contracts on market terms with government securities distributors who meet definite requirements and to terminate such contracts early if the distributors cease to meet the conditions. The sponsors of the bill from Progressive Bulgaria argued that the new framework would enhance people's financial culture and would encourage them to develop an investor's mindset. Further provisions liberalize the registration and settlement process for trading in government securities issued on the Bulgarian market. These revisions will make it possible to attract European and global institutions to the Bulgarian government securities trading system in the context of Bulgaria's eurozone entry. Economy Lyubomir Gigov Nelli Zheleva https://www.bta.bg/en/news/economy/1158976-agriculture-minister-prohibits-mowing-of-agricultural-areas-during-daytime https://www.bta.bg/en/news/economy/1158976-agriculture-minister-prohibits-mowing-of-agricultural-areas-during-daytime Wed, 01 Jul 2026 15:06:00 +0300 An order was issued on Wednesday, prohibiting the mowing of agricultural areas, Agriculture Minister Plamen Abrovski announced at a briefing at the Council of Ministers. The minister explained mowing will be limited only in the dark and in the morning until 8:00 a.m., in order to avoid causing fires that could affect forests from agricultural areas, and vice versa. Abrovski said that when he took office as Minister of Agriculture, the Forestry Agency and the six state forestry enterprises had implemented only 55% of fire prevention measures. "We have largely caught up on their implementation and we hope that the fires will be much fewer than last year," the minister added.   He called on people to be responsible in nature, because the vast majority of fires are caused by unintentional human activity. Economy Sofia Gospodinova Atanas Malakchiev https://www.bta.bg/en/news/economy/1158865-central-bank-reports-94-of-leva-banknotes-coins-withdrawn-from-circulation https://www.bta.bg/en/news/economy/1158865-central-bank-reports-94-of-leva-banknotes-coins-withdrawn-from-circulation Wed, 01 Jul 2026 13:07:09 +0300 According to data from the Bulgarian National Bank (BNB), as of June 30, BGN 29.4 billion has been exchanged for euros, which represents 94.48% of the leva banknotes and coins in circulation at the beginning of 2025. At the same time, BGN 1.7 billion in banknotes and coins remained outside the BNB's vaults as reported by the BNB on Wednesday. As of June 30, euro banknotes and euro coins in circulation in Bulgaria totalled EUR 8.8 billion, with this volume ensuring the normal functioning of cash circulation and effective servicing of the economy and the population, the BNB stated. The process of exchanging the lev for the euro proceeded smoothly, organized and in accordance with the established regulatory framework, without any difficulties in serving citizens, businesses and the financial system, the BNB also said. On June 30, the six-month period within which banks were obliged to exchange available leva into euros for citizens and businesses free of charge expired, From July 1, banks have the right to determine and charge fees when exchanging leva into euros. According to the current regulatory framework, they are obliged to notify the BNB of the amount of the applied fees, and the BNB has no authority to intervene in these decisions, the announcement noted. The BNB also reminded that the exchange of leva into euros will continue indefinitely at the BNB cash desks, and that no fees are charged for these operations and they remain completely free of charge. Economy Atanas Malakchiev Anelia Tsvetkova