An investment committee in MIG will support the absorption of funds from the European Investment Fund

With 14 votes "for" and 2 votes "against", the Committee on Economic Policy and Innovation in the Parliament approved in the first reading a bill for the ratification of a financing agreement under the recovery and sustainability mechanism between Bulgaria and the European Investment Fund. It is for the implementation and management of the capital operations supported under the Mechanism for Recovery and Sustainability in Bulgaria, BTA reported.

The agreement was signed on December 5, 2022 by the Minister of Innovation and Growth for the Republic of Bulgaria and by representatives of the European Investment Fund - Marcel Müller Marbach and Pablo Milan Santero.

The agreement was concluded in implementation of the Annex dated April 28, 2022 to the implementation decision of the Council approving the assessment of the Recovery and Sustainability Plan of Bulgaria (RSP), according to which the capital instruments under the PSP will be applied by the European Investment Fund (EIF) as a financial partner (implementation partner) through direct provision to the EIF under a special financing agreement under the Recovery and Sustainability Facility (RSF) between the Government of Bulgaria and the EIF. The planned funds for capital operations under the Recovery and Sustainability Plan have a total value of 180 million euros.

The project stipulates that the EIF will receive an annual fee of 0.65 percent of the amount plus other fees, but no more than 10 percent of the total amount of the already stated 180 million euros or up to 18 million euros, the Ministry of Innovation and the growth.

The purpose of the Economic Transformation Program, which is part of the PES, is to provide support for the rapid recovery and growth of Bulgarian enterprises in the main problem areas that hinder their competitiveness and slow down the transformation to a digital, low-carbon and resource-efficient economy. The program consists of three funds: "Growth and Innovation", "Green Transition and Circular Economy" and "Investments in Climate Neutrality and Digital Transformation".

The agreement has the force of an international treaty and is subject to ratification by law by the National Assembly.

The deputy Rumen Gechev expressed concern that the Bulgarian side has not established mechanisms and criteria for evaluating the work of the EIF. He pointed out that they have secure income in the EIF, without it being clear what the benefit of their work will be for the Bulgarian state. It is not clear who will invest and where the money will be directed, he added. Rumen Gechev said he would approve the project, but suggested that the consultant's fee be paid progressively, depending on the outcome.

An investment committee headed by MIG will decide where to direct the money, and everything will be coordinated at the level of the European Commission, said the Minister of Innovation and Growth Alexander Pulev. EIF is a structuring agent and consultant. He will not invest, we will use his best practices, and the money will come from Europe through PVU. All beneficiary options are open and will be considered by MIR. It is useful for the agreement to be in a broader framework in order to do our work better, Pulev added.