Bulgaria's budget deficit under the Consolidated Fiscal Program (CFP) amounted to EUR 569.1 million on a cash basis as of the end of February. It is equivalent to 0.5% of the estimated gross domestic product (GDP), the Ministry of Finance reports. Revenues, grants and donations under the CFP as of February amounted to EUR 6.845 billion. Revenues increased by 21.7% (EUR 1.219 billion) compared to the same period in 2025, with tax and social security revenues increasing nominally by 15.8% (EUR 734.9 million). Non-tax revenues are similar in size, and revenues in the area of ​​grants and donations are higher by EUR 457 million. Tax revenues (including revenues from social security contributions) amount to EUR 5.376 billion and form 78.5% of total CFP revenues for the period. Non-tax revenues amount to EUR 791.9 million and are formed mainly from revenues from state, municipal and court fees, revenues and income from property, revenues from concessions, revenues from the sale of greenhouse gas emission allowances. Revenues from grants and donations (mainly revenues from EU programs and funds) amount to EUR 676.6 million. CFP expenditures (including Bulgaria's contribution to the EU budget) as of February 2026 amount to EUR 7.414 billion. For comparison, CFP expenditures as of February 2025 amounted to EUR 6.136 billion, or an increase in expenditures as of February 2026 of EUR 1.277 billion (20.8%). The increase in expenses is mainly in the area of ​​social payments, including pension expenses, as well as in personnel expenses, capital expenses, etc. Non-interest expenses amount to EUR 7.085 billion, which represents an increase of EUR 1.185 billion (20.1%) compared to those reported as of February 2025. Current non-interest expenses amount to EUR 6.435 billion. Capital expenses (including the net increase in the state reserve) amount to EUR 639.2 million. Current and capital transfers provided abroad amount to EUR 10.9 million. Interest payments amount to EUR 106.5 million and have increased by EUR 26.6 million compared to the same period in 2025. The size of the fiscal reserve as of February 28 is EUR 6.606 billion, including EUR 6.182 billion in fiscal reserve deposits with the BNB and banks and EUR 423.9 million in receivables from European Union funds for certified expenses, advances, and others.

The Agricultural Processing Investment Program, Climate Change Mitigation and Adaptation Component, is open until April 27, 2026, offering funding opportunities for projects ranging from EUR 15,000 to EUR 2 million. The grant is 50% of the eligible costs of the project proposal. Eligible applicants under the Program are: farmers, agricultural processors, engaged in agricultural processing, as well as recognized producer groups and organizations. Eligible costs are the costs of tangible investments in buildings and other immovable assets related to production and/or marketing, purchase of new machinery, facilities, means of transport and equipment necessary to improve the production process for processing and marketing, as well as their installation, construction, purchase of installations for the production of energy from renewable energy sources for own consumption, purchase and installation of facilities for local storage of the produced energy (batteries) to existing photovoltaic systems, construction, purchase of equipment for wastewater storage facilities, including installations for wastewater treatment in processing and marketing, construction, purchase of equipment for facilities and machines for the production of liquid, gaseous and solid fuels from biomass, used for the production of energy for own consumption and own needs, also allowing the utilization of residues/waste from the processing of agricultural raw materials, etc. Eligible costs include the implementation of quality management systems, purchase of software related to the applicant's processing activities, including through financial leasing, costs related to the application for support (costs for fees, fees for architects, engineers and consultants incurred both in the process of preparing the project before submitting the application for support and during its implementation). For additional information and requests for consultation - at: http://sfb.bia-bg.com

The Fund of Funds (FnF) signed an agreement with Innovation Capital II, selected to manage the Enterprise Innovation Fund. The fund manager is a continuation of Innovation Capital, which managed over EUR 19 million during the previous programming period and made 184 investments. The Enterprise Innovation Fund will provide support for the creation and development of innovative businesses in order to stimulate innovation in Bulgaria and the development of products with high added value. More than half of the resources will be directed to enterprises in the less developed regions of the country. It is expected that a resource of EUR 39.58 million will be accumulated, of which EUR 32.17 million are public funds provided under the Enterprise Competitiveness and Innovation Programme 2021-2027, co-financed by the European Union through the European Regional Development Fund. Part of the attracted private capital - EUR 3.91 million, will be committed at the stage of establishing the alternative investment fund, and the remaining EUR 3.5 million will be additionally attracted and invested in specific final recipients. The investment period of the Enterprise Innovation Fund is until 31.12.2030. The instrument will support a minimum of 46 enterprises, of which at least half should be newly established (within 3 years of registration). This is the third signed contract by the Fund for an equity financial instrument during this programming period, which will make over EUR 150 million available on the market.

The joint venture Etem Gestamp and the independent power producer Rezolv Energy have signed a key 10-year virtual power purchase agreement (VPPA). The deal aims to secure long-term supplies of green energy for the automotive industry. Sofia-based Etem Gestamp, a joint venture between Viohalco Group and Spain’s Gestamp Group, will purchase electricity from the VIFOR wind farm. The 461 MW facility is owned by Rezolv Energy (a company backed by Actis) and is due to be commissioned in Buzau County, Romania. This is the first publicly announced cross-border wind power supply agreement in Bulgaria. The agreement is the first PPA (power purchase agreement) for Rezolv Energy in 2026 and the third PPA for Etem Gestamp overall. In 2022, the company signed a 10-year agreement to purchase 100% of the electricity generated by a solar power plant, which was then still under construction in Bulgaria. This was the first PPA in the country where an industrial electricity user agreed to purchase all the green electricity generated by a solar power plant. The new wind VPPA with Rezolv Energy will complement solar power supplies and allow Etem Gestamp to balance its electricity consumption. The company expects around 70% of its energy mix to come from renewable sources by 2027. The agreement is Rezolv Energy’s seventh PPA in Romania and Bulgaria and the second with a company in the automotive sector. In 2024, the company signed a 10-year VPPA with Bekaert, a global leader in the transformation and coating of steel wires with a significant presence in the automotive industry. The deal sees Bekaert purchase 100 GWh of electricity per year from the VIFOR wind farm, one of the largest PPA agreements in Southeastern Europe. Once fully operational, VIFOR will be one of the largest onshore wind farms in Europe. Close to the Carpathian Mountains and with exceptional wind potential, the project will generate enough clean energy for over 270,000 households and prevent around 540,000 tonnes of carbon dioxide per year. Etem Gestamp is an international manufacturer of aluminium extrusions and components for the automotive industry. Founded in 2019 as a joint venture between Viohalco Group and Spanish supplier Gestamp, the company focuses on the extrusion and processing of aluminium profiles for automotive structures and other industrial applications. Headquartered in Sofia, Bulgaria, Etem Gestamp develops innovative aluminium solutions that help car manufacturers produce safer and lighter vehicles, while reducing energy consumption and environmental impact. The company supplies high-precision aluminum profiles and machined components to original equipment manufacturers (OEMs) and Tier 1 suppliers worldwide, supporting the growing demand for lightweight and sustainable mobility solutions. Rezolv Energy is one of the largest independent renewable energy producers in Central and Eastern Europe. Founded in 2022 by Actis, a leading investor in sustainable infrastructure projects, the company has a portfolio of 2.3 GW of large-scale wind and solar farms in Romania and Bulgaria. In addition to the VIFOR wind farm, one of Rezolv Energy’s projects in Romania is Dama Solar in Arad County. With a capacity of 1,044 MW, it is expected to be the largest solar farm in Europe once it is commissioned. In Bulgaria, the portfolio includes the 225 MW Sveti Georgi project, which is currently under construction on the former Silistra airport site (165 ha). With almost 400,000 photovoltaic panels, "St. George" will be one of the largest solar projects in Bulgaria once it enters into operation in the first half of 2026.

VD Imperial Hotel, one of the five hotels in the Riviera complex, will be completely renovated. At the end of 2024, Hristo Asenov's Varna-based HVD acquired the Riviera complex from Vessela Kyuleva-Stankova. With the purchase, Hristo Asenov became one of the largest hoteliers in the country, managing a chain of 9 hotels in Bulgaria (including the 5 in Riviera) and one in Germany. Hotel Viva is HVD's first hotel. It is located in Golden Sands, 800 meters from the resort center, and is not located directly on the beach. HVD Miramar in Obzor opened in 2006 and is on the seafront with direct access to the beach. In 2025, the hotel's restaurant and kitchen were reconstructed, and this year - the lobby and reception. There are also several a la carte restaurants. Hotel Reina del Mar in Obzor is the newest hotel in the group's portfolio, opening in 2019 - 2020. It is located on 120 acres, most of the rooms have a sea view, with 2/3 of the villas having their own pool. The hotel has 8 food and beverage outlets. Two main restaurants, as well as a la carte restaurants with a thematic focus - Italian, Turkish, Mediterranean, Asian. Spa and Wellness center. In Sunny Beach, the group is present with Club Hotel Bor, located in the center of the resort and 150 meters from the beach. It is relatively small with 229 rooms, but has the highest occupancy of the hotels in the entire portfolio, the group announced. The purchase of Riviera took place through the company "Tourist Investment", in whose group are HVD Hotels. It was registered in Varna more than 20 years ago by Hristo Asenov. The owner of "Tourist Investment" is "Assortis Limited", Great Britain. "Tourist Investment" is managed by Violeta Asenova and Hristo Asenov. Riviera is a holiday complex with over 70 years of history, and was originally a government residence. Among the advantages of the complex is that it has 1 kilometer of its own beach, with about 25 square meters of beach per guest. There are 21 establishments on the territory - bars and restaurants, and a beach bar was opened last season. The complex also has a mineral spring with 38 degrees water. There are five hotels, with HVD Imperial awaiting renovation. The leading one is Riviera Beach, where all rooms have a sea view. It has 4 conference halls and 290 rooms, as well as one main and three a la carte restaurants. Boutique Hotel Oasis was built in 1956, and was created on the bed and breakfast principle and is suitable for events, such as weddings. The fourth is Lotos, where most rooms also overlook the sea. The last one is the Nympha Hotel, which is located right next to the sea and has been adults only since last year.

The European Bank for Reconstruction and Development (EBRD) is strengthening its presence in the corporate banking market in Bulgaria with an innovative €20 million loan to Bulgarian copper producer Sofia Med. The deal benefits from an EU guarantee under the InvestEU programme and is the first for the EBRD in Bulgaria to link sustainability indicators to pricing. Bulgaria is working to accelerate the transition to a green economy, and copper is a critical raw material for this process, as it is needed for electrification, renewable energy infrastructure and electromobility, the EBRD said. The loan will promote copper recycling, with a focus on increasing the use of secondary recycled content and improving water efficiency. The InvestEU guarantee, at just under 25 percent, allows the EBRD to offer Sofia Med a financial incentive through adjusted interest rates linked to the achievement of pre-agreed sustainability targets. InvestEU is a flagship initiative of the European Union aimed at supporting strategic investments in sustainable infrastructure, research, innovation and digitalisation, small and medium-sized enterprises, as well as in social investment and skills. It provides a guarantee mechanism to unlock financing, focusing on projects that promote long-term growth and sustainability. The EBRD is one of the lead implementing partners of the InvestEU programme and uses portfolio risk-sharing instruments for financial intermediaries in the EU countries where it invests. Sofia Med, a subsidiary of Viohalco, a leading European producer of non-ferrous metals, is a current EBRD client.

District heating companies in Bulgaria have officially requested an increase in the price of heat within the range of 4 to 29% for the upcoming regulatory price period. The new tariffs should come into force on July 1 this year. The energy regulator (the Energy and Water Regulatory Commission - KEWR) will prepare reports on the price requests and will subject them to public discussion before making its final decision. The largest price increase is requested by "Toplofikatsiya Sofia" EAD. The company's application is for a price of 89.63 euros per megawatt hour, which is an increase of 29 percent compared to the current one. "Toplofikatsiya Ruse" does not want a change and proposes that the price for household consumers from the new regulatory period remain at 49.90 euros per megawatt hour. The company's proposal for the price of heat energy with industrial steam as the heat carrier, which is for business and public customers, is an increase of 1 euro cent from 68.53 euros to 68.52 euros. Veolia Energy Varna proposes that the price for household consumers be 3.9 percent higher. Toplofikatsiya Razgrad AD proposes for approval by the Energy and Water Regulatory Commission a price for heat energy of 81.46 euros per megawatt hour, which is 15.35 percent more than the current one. Toplofikatsiya Pleven AD wants to increase the price for household consumers by 10.82 percent - from 47.87 euros to 53.05 euros. Toplofikatsiya VT proposes a price increase of 26.03 percent from 69.04 to 87.01 euros per megawatt hour. "Toplofikatsiya Sliven" is asking the energy regulator for a price increase of 4 percent - from 50.16 to 52.17 euros per megawatt-hour for household consumers and by 13.61 percent for business and public subscribers - from 47.92 to 54.44 euros per megawatt-hour.

Kasto Chairs is a Bulgarian family company from Velingrad, which has been producing chairs in our country since 1994. The company's business does not operate on the Bulgarian market, but is entirely export-oriented. The production reaches the markets of the EU (mainly France and Germany), Asia, Africa, the USA and even as far away as Australia. In 2025, Kasto Chairs' annual turnover was 4 million euros. The company's chairs are made of beech wood, and their production is almost entirely automated. However, the team is between 70 and 80 people. The family company's production is intended for the HORECA industry, and their chairs are characterized by strength and durability. The production base extends over 28,345 sq. m. It produces about 10,000 chairs per month.

At the end of the third quarter of 2025, Terem - Khan Krum in Targovishte reported a loss of 2,235,000 leva. This is stated in the latest published public report for the first nine months of 2025. The company is finding it increasingly difficult to cover the most pressing current expenses for salaries, electricity, materials related to the implementation of accepted orders. By the end of the second quarter of 2025, a significant part of its obligations to suppliers, social security contributions and taxes were overdue. The reason for the significant deviation of the financial result from the accepted and presented business program of the company was the failure to conclude planned contracts, the report states. Other reasons include: Delays in deliveries of products and materials owned by customers under production contracts; high overhead costs, social tension and protest actions for delayed salaries. The company remains with low competitiveness, especially in the civilian production market. It is determined by outdated, highly energy-intensive equipment; the high cost of production, lack of flexibility in bidding and searching for new markets, poor advertising of the company's capabilities.

Foreign central banks have slashed their holdings of U.S. Treasury securities held at the New York Federal Reserve to their lowest level since 2012, as countries sell off the assets to shore up their economies and currencies after the Iran war. The value of U.S. bonds held by official institutions at the New York Fed has fallen by $82 billion since February 25 to $2.7 trillion, Fed data showed, citing the Financial Times. The decline in these assets since the start of the war a month ago underscores how a surge in energy prices triggered by the closure of the Strait of Hormuz has strained the finances of oil-dependent countries and strengthened the dollar. It comes as some central banks have intervened in foreign exchange markets to support their currencies. According to official data, since February 27, the Turkish central bank has sold $22 billion worth of government securities from its foreign exchange reserves, a significant portion of which is likely to have been US bonds. Separate data from the central banks of Thailand and India show that foreign exchange reserves have also been used since the start of the war, although it is not clear whether these were sales of bonds or dollar deposits. Foreign central banks are selling US bonds at a time when the government bond market is already under pressure, as traders worry that the conflict in the Middle East could lead to higher inflation. This led to the biggest increase in yields on 2- and 10-year Treasury notes this month since 2024. Some of the US bonds are likely to have been transferred to depositories other than the New York Federal Reserve, rather than being sold outright. But the sell-offs reported in the Fed data were still significant, especially considering that the Treasury market has grown roughly threefold since 2012, when the Federal Reserve last reported similar levels of sales. The official foreign portfolios of Treasury securities held by the Federal Reserve have shrunk in recent years as foreign exchange reserve managers have diversified away from the dollar. Prices of government bonds around the world have risen as concerns that the conflict in the Middle East will slow global economic growth revived demand for government securities, Bloomberg reported. U.S. Treasuries rose along with British and Japanese bonds on speculation that a surge in oil prices could lead to a prolonged global fuel shortage. The rise in bonds came after weeks of sell-offs triggered by a surge in oil prices and concerns about possible interest rate hikes by central banks. The yield on two-year U.S. Treasury notes, which are among the most sensitive to monetary policy changes, fell 6 basis points to 3.85%, after falling 7 basis points on Friday. The yield on 10-year bonds fell nearly 7 basis points to 4.36%. The yields on 10-year British and German bonds fell about 5 basis points to 4.92% and 3.04%, respectively. Japanese bonds with the same maturity fell one basis point to 2.36%.

China has shown surprising resilience in the face of the energy shock caused by the war in the Middle East, as the stability of its financial markets is beginning to attract increasing interest from international investors, Reuters reports. With oil prices soaring and global supply chain tensions straining, the Chinese economy appears better prepared than other major markets to withstand the shock. While major stock indexes around the world have suffered heavy losses, Chinese assets have seen much more limited declines. The CSI300 index fell about 4.6 percent, while markets in India, Japan and South Korea have lost more than 10 percent, and the US S&P 500 has fallen nearly 8 percent. At the same time, the Chinese yuan has remained relatively stable against the dollar, and the debt market has remained resilient despite increased volatility in other regions. This has boosted the confidence of investors, who are increasingly viewing Chinese assets as a temporary “safe haven” option in times of uncertainty. Although China is the world's largest importer of oil, including through the strategic Strait of Hormuz, the country has significant buffers against potential disruptions. A strong domestic energy base, restrictions on fuel exports, and developed infrastructure allow for diversification of supplies through Russia, Central Asia, and Myanmar. In addition, China maintains oil reserves that can cover about seven months of imports. An additional advantage is its large electric vehicle fleet and an electricity system that relies largely on domestic sources such as coal and renewable energy. This reduces dependence on external supplies in times of crisis. Low inflation in the country allows the economy to absorb higher energy prices more easily, and recent economic data indicates some improvement. This supports interest in Chinese technology and consumer companies. At the same time, investors are also directing funds to renewable energy, betting on growing global demand for solar panels, batteries, and green technologies. However, some investors continue to seek security in the United States or smaller Asian markets such as Malaysia and Singapore. Analysts warn that with continued growth in energy prices, the vulnerability of Europe and Japan could further intensify the redirection of capital to China.