17.02.2021 Sofia Kassidova: The recovery and resilience plan will be the main crisis recovery mechanism for the Bulgarian economy
The recovery and resilience plan will be the main crisis recovery mechanism for the Bulgarian economy. It will provide the powerful stimulus that will allow Bulgaria to cover the long way towards transformation of the economy by ensuring investments in a resilient, ecological, innovation-driven and green growth-based economy. This was stated by Sofia Kasidova, Director - Strategic Analysis and Development at the Bulgarian Development Bank, at the conference The EU recovery and resilience plan for Bulgaria’s transition: Innovation – Green Agenda – Digital Transformation.
The EU’s recovery and resilience plan is the largest stimulus package up to date. The total amount of funds under the plan is EUR 1.9 trillion, and over 50% will be invested to support innovation, scientific research, climate and digital transition. According to Kasidova, banks will play a key role for the mobilization of the necessary financial resources and will thus increase the impact of the policies set forth by the plan. “It is the catalyzation and acceleration of investment activities after the crisis that will provide the needed push towards modernization, digitalization and a qualitative transformation of our economy in order to achieve the convergent goals,” she said.
Sofia Kasidova named as main drivers of innovation the achievement of a zero carbon emissions balance, adaptation to climate change, transition to Industry 4.0. According to her, in order to support the needed business transformation, the BDB has developed a portfolio of financial instruments, including various investment and turnover loans, guarantee programs and capital investments.
“The pandemic allowed the BDB to assume a balancing role as a stabilizing force for Bulgarian business by providing liquidity to companies through a special guarantee program via commercial banks. This is how we mitigated risk for the business and banking system during the crisis. The BDB is also prepared to support the need for provision of additional capital to enterprises after the end of the recession. In the long term, we will focus on supporting green and social projects and companies,” the strategic analysis and development advisor said.
Other participants in the event were Minister of Economy Lachezar Borisov, Minister of Transport, Information Technology and Communications Rosen Zhelyazkov, UniCredit Bulbank CEO Teodora Petkova, the Chairman of the National Agency for Research and Innovation Martin Danovski, representatives of the World Bank, the European Commission, international rating agencies, and others.
Other points of discussion at the online conference were the transition of our country to a circular, low-carbon economy, sustainable agriculture and the opportunity for a digital transformation.