The Association of Bulgarian Employers' Organizations (AOBR) calls on the country's president and ombudsman to take measures within their powers against the part of the so-called extension law that indexes salaries in the budget sector, as these texts contradict the Public Finance Act and the Constitution of the country. The AOBR, which unites the officially recognized representative organizations of employers in our country (AIKB, BIA, BCCI and KRIB), insists that the president return the part of the Law on the Collection of Revenues and the Execution of Expenditures in 2026 that indexes salaries in the budget sector with inflation and/or that the president and ombudsman refer the matter to the Constitutional Court for unconstitutionality, including violation of the rights of Bulgarian citizens. According to the organization, contrary to the rules set out in the Public Finance Act, probably due to pre-election populism and with a situational majority, the National Assembly has added a one-time indexation of employees in the budget sector (whose salaries were already indexed for this year at the highest rate in the EU) with the accumulated annual inflation, which, depending on the interpretation and potential re-extension, could accumulate between 0.5 and 1 billion leva of new state debt, for which there is no basis and the caretaker government will not be authorized. The extension budget creates a dangerous legal precedent of voluntaristic and unconstitutional adoption of legislation by the National Assembly, which raises serious concerns for the legal order and the rule of law in the country, as well as for the stability of public finances and the management of the deficit and state debt in the medium and long term. Last week, the Fiscal Council also pointed out that the indexation of income through an extended budget compromises the principles of budget legislation and creates a dangerous precedent in the country's budget policy. When voting on the Law on the Collection of Revenues and the Execution of Expenditures in 2026, the National Assembly approved a proposal submitted by Assen Vassilev between the first and second readings, providing for the indexation of the salaries of employees in the budget sphere who are not on the minimum wage, by the amount of annual inflation at the end of 2025.

Bulgaria has the highest growth in labor costs among the European Union countries - in the third quarter they increased by 12.3% compared to a year earlier, according to Eurostat data. For comparison, in the second country with the highest growth - Croatia, costs rose by 9.7%. On average in the EU the increase is 3.7%, and in the eurozone - 3.3%, according to statistics on hourly labor costs. Among the leaders in growth are mainly countries from Central and Eastern Europe - Croatia, Hungary, Poland, the Czech Republic, Estonia and others, where the level of income is still lower in absolute terms compared to that in Western Europe, but recently the distance has been closing relatively quickly. In recent years, inflation in Eastern European countries has been much higher than the average for the union, which also partly explains the higher wage growth. According to the latest data from the National Statistical Institute, as of the third quarter of this year, the average monthly gross salary in Bulgaria reached 1,303 euros (or 2,549 leva), increasing by 12% compared to a year earlier. This is happening against the backdrop of a tight labor market - low unemployment and a shortage of personnel. The increase in the minimum wage also contributes to the annual growth in labor costs reported by the statistics - at the beginning of 2025, it increased by over 15% to 1,077 leva (approx. 551 euros), and from next year a new growth of 12.6% is expected, which will make it 1,213 leva (620 euros). The growth is also supported by the significant increases in individual parts of the public sector, after salaries in the security and defense sectors were increased by around and over 50% due to a formula set in the law that ties salaries to the national average. In the first months of next year, the increase in salaries in the public sector will slow down, after the deputies adopted as part of the extension law for the budget that they be indexed to the rate of inflation, or about 5%. In Bulgaria, the costs specifically for salaries have increased by 12.4% over the last year, and the remaining labor costs (including social security and others) - by 12%, according to Eurostat data. Total labor costs are increasing most sharply in administrative and auxiliary activities - by 21%, followed by the extraction of minerals by 18.5%. Labor costs are also growing by over 16% in the arts and entertainment sector, in construction, as well as in the field of public administration and defense. With the lowest, but also significant growth, are sectors such as ICT (8.2%) and energy (6.9%), where wage levels in absolute terms are already high compared to the general level, but also in hotels and restaurants (7.5%), where in terms of value they are among the lowest. The high growth of labor costs in Bulgaria this year is no exception - the country ranks first in the EU in terms of overall growth for the period since 2019. Since then, average labor costs have increased slightly more than 2 times. Other Eastern European countries such as Lithuania, Hungary, Romania and Poland also report similar, but slightly lower rates.

In 2024, the liabilities of state-owned enterprises under EU Directive 2011/85 amounted to 8.80 percent of gross domestic product (GDP), of which 0.88 percent were liabilities of financial enterprises and 7.91 percent were liabilities of enterprises with activities other than financial ones. In 2023, the liabilities of state-owned enterprises amounted to 9.32 percent of GDP. Data on the liabilities of state-owned enterprises are obtained from the annual activity reports of state-owned enterprises, which are classified in the sectors "Non-financial corporations", "Financial corporations" and "Non-profit organizations serving households", but are controlled by the sector "General government" and its subsectors.

The net income from fees and commissions of the banking system in our country increased by 9.5 percent or by 114 million leva on an annual basis to a total of 1.3 billion leva by the end of September this year. Net income from fees and commissions occupies a share of 21.8 percent in the structure of the net operating income of banks in our country. Income from fees and commissions increased by 11.3 percent on an annual basis to 1.7 billion leva by the end of the third quarter of this year, while expenses for fees and commissions increased by 17.5 percent for the same period to 393 million leva. The total net operating income of the banking system increased by 217 million leva (3.8 percent) compared to September 30, 2024 and reached 6 billion leva by the end of September this year. Net interest income at the end of the third quarter of this year amounted to BGN 4.2 billion, or BGN 33 million (0.8 percent) more than in the same period last year, and its share in the structure of net operating income reached 69.6 percent (71.7 percent as of September 30, 2024). For the same period, interest income increased by BGN 93 million (1.9 percent) to BGN 5.1 billion, and interest expenses increased by BGN 60 million (7 percent) to BGN 921 million. As of September 30, 2025, the impairment charges on financial assets not measured at fair value through profit or loss amounted to BGN 506 million, which is BGN 56 million (12.5 percent) more than in the nine months of 2024. The administrative expenses of the banking system increase by BGN 86 million (4.8 percent) compared to the same period in 2024 to BGN 1.9 billion. In their structure, personnel expenses increase by BGN 89 million (8.5 percent) to BGN 1.1 billion. Depreciation expenses increase to BGN 245 million (from BGN 236 million at the end of September 2024). Gross non-performing loans and advances at the end of September 2025 amount to BGN 3.8 billion (BGN 3.9 billion at the end of June 2025). Their share in gross loans and advances on a broad basis decreases to 2.3 percent, and on a narrow basis – to 2.9 percent (from 2.5 percent and 3 percent at the end of June, respectively). During the period July-September 2025, net non-performing loans and advances (after deducting their inherent impairment), representing the residual credit risk in bank balance sheets, decreased by BGN 160 million (8.2 percent) to BGN 1.8 billion. The share of net non-performing loans and advances in total net loans and advances, presented in the broad and narrow scope, as of September 30 was 1.1 percent and 1.4 percent, respectively (compared to 1.2 percent and 1.5 percent, respectively, at the end of June). As of September 30, 2025, the banking system reported a profit of BGN 2.8 billion, or BGN 91 million (3.3 percent) more than that realized for the nine months of 2024.

The National Railway Infrastructure Company (NRIC) has selected the builders to modernize the railway lines Sofia - Pernik - Radomir and Gyueshevo - border with the Republic of North Macedonia. The total value of the possible contracts for the repair of the sections is over 520 million leva excluding VAT. Both projects are part of Corridor 8, and their implementation is an important step towards renewing the railway network and improving regional connectivity between the Black and Adriatic Seas. The section from Sofia via Pernik to Radomir will be repaired by the ISPA consortium, which offered 421,283,219 leva excluding VAT. It includes companies that are not known to the general public in railway construction - Interconnecta EOOD and SA.IE. "Interkonekta" has declared experience in the renovation of a kindergarten in Svoge and a street in Rakitovo, and "SA.IE" - renovations of schools and kindergartens in Bobov Dol, Radomir and Galabovo. The two companies participated in the construction of an inter-system gas connection Bulgaria - Serbia on Bulgarian territory. They received 11.88 million leva for this. The company "Interkonekta" is managed by Kamelia Taskova and is located at 34 "3020-ta" Str., 5th floor, "Industrial Zone Orion" residential district. The company was a subcontractor of "Atomenergoremont" AD. "SA.IE", together with two foreign companies, won the tender for the construction of the pipe from the vertical gas corridor from Piperevo to Pernik, with the start of construction activities planned for December 2025. "SA.IE", together with the Romanian branch of the Austrian "Habau", is the only candidate in the tender for a new water injection well in the gas storage facility in Chiren for nearly 16 million leva excluding VAT. The selection of a contractor for the repair of the line from Sofia via Pernik to Radomir can be appealed and this may delay the conclusion of a contract. Otherwise, once such a contract is signed, a double railway line for speeds up to 160 km/h would have to be built, the track development at the stations would have to be renovated and the level crossings with road and pedestrian traffic would have to be completely eliminated. The construction of two two-track tunnels is also planned - Batanovtsi with a length of about 880 m and Bushlyak - about 400 m. 8 bridge structures with openings from 25 m to 50 meters will also be built. The selected contractor will receive an advance of 10% of the contract price excluding VAT. Interim payments are in the amount of no more than 85% of the price, and the final payment - no less than 15%. The deadline for implementation is until mid-2029. The "GUESHEVO 2025" consortium has been selected for the repair of the railway line from Gyueshevo to the border with the Republic of North Macedonia. Its proposed price is 97,972,691.73 leva excluding VAT for the 2.4 km section. "Trace Group Hold" and "VDH" participate in the consortium. The public procurement for the last 2.4 km from the Gyueshevo railway station to the border with North Macedonia is in the engineering - design and construction phase. In addition to the construction of the track, the reconstruction of the Gyueshevo railway station is also planned, which will become a border passenger and freight station for Schengen. The deadline for completion of the activities is by the end of 2028 for the entire section, except for the last 420 meters to the tunnel.

The Czech giant Skoda was also selected as the contractor in the Metropolitan order for the supply of 8 more new metro trains. Thus, the company secured contracts exceeding 1.1 billion leva for the renewal of the rolling stock of the state railways (BDZ) and the capital's urban transport. The procedure for the new metro trains, intended for lines 1, 2 and 4, was finalized in a record short period of about a month, after it was announced on October 7 this year. The total estimated value of the order is 280 million leva excluding VAT, but is divided into two phases. The first includes an order for 8 trains with an estimated budget of 140 million leva. The offer of the Consortium Skoda Transportation and Skoda Vagonka for them is 139,360,000 leva excluding VAT. This means that the unit price of one new train is exactly 17,420,000 leva. The key point in this contract is the second phase – the so-called “option for additional 8 trains”. At the moment, Metropolitan is not obligated to purchase these additional units, but nevertheless it has them as an option. The company has one year to decide whether to activate it. If it does so, the total value of the deal will reach the full amount of 280 million leva. The Czech company was the only participant in the procedure. Just two years ago, Skoda signed a contract for another 8 trains worth 134 million leva. On the same day – October 29, 2025 – Stolichеn Elektrotransport came up with two key decisions, determining Skoda Electric as the winner in two tenders for the supply of a total of 75 new trolleybuses. The first order for 40 articulated 18-meter machines was won at an estimated value of 68 million leva, with Skoda offering a price of 67,980,000 leva. There was practically no competition here, as the Turkish participant Helis Yapi was eliminated due to lack of experience in the sector and thus no price offer was opened at all. In parallel, Skoda managed to prevail in the battle for the 35 short trolleybuses, which has been going on for more than a year. The procedure started in October 2024, but the final decision came on October 29. In this tender, the Czechs faced off against the Polish manufacturer Solaris and managed to win with a lower price of 41.9 million leva at an estimated value of 45.5 million leva. The Polish company offered 43.9 million leva. Thus, practically within the same day – October 29 – Škoda received contracts for over 110 million leva for trolleybus transport in Sofia alone. Earlier, the Ministry of Transport signed a large-scale contract with the same company for the supply of 20 electric multiple units under the Recovery Plan, plus another 5 under the operational program, for a total value of 639.2 million leva excluding VAT. The first of these trains is already ready and is expected to arrive for tests in January 2026. With these coordinated victories, Škoda becomes almost the only supplier of rolling stock for mass transport in Bulgaria.

Enterprises in the Fisheries sector will have access to loans on preferential terms with financing of nearly EUR 6.5 million. The funds are provided by the Fund of Funds under the Maritime Affairs, Fisheries and Aquaculture Programme 2021-2027, co-financed by the EU through the European Maritime Affairs, Fisheries and Aquaculture Fund. The debt instrument, which is to be structured in the form of loans and guarantees, will aim to facilitate access to financing for enterprises in the sector by offering preferential conditions for granting loans: lower interest rates, relaxed collateral requirements, extended grace period. The guarantee product will secure up to 80% of each loan granted by an intermediary bank, but not more than EUR 500 thousand. Risk-sharing loans can be provided both for investment purposes (up to EUR 500 thousand) and for working capital (up to EUR 150 thousand). Investments in aquaculture, in the processing of fish and fish products, specific equipment of fishing vessels, activities to improve the infrastructure of fishing ports and fish exchanges will be financed. The funds can also be used to support project proposals for the implementation of local development strategies and the diversification of activities in the local blue economy with a view to improving the economic and social well-being of fishing communities. Eligible final recipients that could benefit from it are: micro, small and medium-sized enterprises; large enterprises (for support only with financial instruments, without combination with grants); registered small-scale coastal fishermen; organizations of fishermen and enterprises in the "Fisheries" sector; municipalities, public institutions. In addition to the funds provided by the Programme, the Fund of Funds will attract additional private financing, with which the total amount of financial resources available to final recipients will reach nearly EUR 8.7 million. Market consultations on the instrument are underway, with the aim of gathering feedback from stakeholders on their needs and priorities, which will ensure optimal structuring and implementation of the financial product.

The Commission for Protection of Competition (CPC) announced a planned deal with a site of "Bulneft Gaz" and OMV. The deal envisages the conclusion of a long-term lease agreement for a site of the company registered in Vidin. The main activity of "Bulneft Gaz" is related to trade, including gas and petroleum products. The company owns a gas station, a truck parking lot and a shopping complex in Vidin, near the border crossing with Romania. The review of the circumstances of the deal will be carried out in an expedited procedure and expects opinions from interested parties by January 29.

he Sveti Vlas Central beach has a new old tenant. This is again the Venid Beach company of local businessmen Yordan and Dinko Dinevi and their partner Georgi Chapkanov. However, unlike 5 years ago, when Venid Beach was the only candidate for the beach, now there were three more participants in the tender who wanted to manage the site. These are the well-known companies in the industry Kram Ins (current concessionaire of the northern beach in Burgas), Palm Invest (which won the concession of the Burgas northern beach in 2017, but subsequently withdrew), as well as 30-year-old Vladimir Sashev Milkov as an individual. The Dinevi brothers' company won the tender with a bid for 96,168 leva including VAT as an annual rental price. The price for using the umbrellas and sun loungers on the beach for the entire 5-year term of the contract will be a maximum of 20 leva per piece. This week, the Ministry of Tourism announced tenders for the lease of four more beaches in the Burgas region - "Vasiliko" and "Popski plazh - north 5" in the municipality of Tsarevo, "Elenite 1" in the municipality of Nessebar and "Pomorie - Bunata". The tenders will be held between January 22 and 26, 2026.

The Minimart chain of stores has opened its 300th store in the country. The company is developing a new concept for Bulgaria of the so-called "convenience stores", which offer quick shopping for people with limited time. The chain opened its first store on March 23, and exactly 1,000 days later it opened its 300th store, announced Dragia Dragiev, CEO of BGK AD. The chain currently serves over 2 million customers per month, and currently employs over 1,200 people in the stores and at the headquarters. Dragiev also thanked the investors in the parent company BGK AD: Petar Dudolenski, Angel Angelov (AP Capital AD), Stoyan Kolev, Tencho Shikov (Trinity Retail OOD), Elvin Guri (RSTX Capital), Rosen Hadzhiev (Profi Investments SA) and Venelin Georgiev (SAF INVEST 2 EOOD).

From the beginning of 2026, Bulgaria will say goodbye to the lev and start using the euro. Bulgaria is not just changing its currency, but becoming part of a currency union that represents about 15% of the global economy. It will be the 21st member of the eurozone, which already encompasses the vast majority of EU countries (27) and almost half of those on the continent (44). Moreover, without being formally members, the currency is officially used by four more microstates (Andorra, Monaco, San Marino and the Vatican) and unilaterally by two more (Montenegro and Kosovo). And if you look at it on a global scale - over 10% of countries pay in euros, and there are still others in Europe and Africa in a fixed exchange rate regime to the euro. With Bulgarians, the citizens of eurozone countries using the euro will steadily exceed 350 million people and would take third position, overtaking the USA. Bulgaria is becoming part of one of the global economic powers and will thus be able to more directly benefit from, but also absorb the negative effects of, crises spanning the entire currency union. With its membership in the EU, our country can now be considered part of a single, huge market, but the level of integration and coordination in the eurozone undoubtedly brings it closer to being accepted as a separate player on the global economic stage. For the first time in its history, Bulgaria's national currency will be one of those used in the reserves of central banks, governments and monetary institutions around the world. Although the dollar remains hegemonic with 56% as of mid-2025, in recent years it has been gradually losing its dominance. However, this does not mean that the euro necessarily occupies these positions, as in recent years it has maintained a share of around 20%. Before the global financial crisis, the single currency peaked at around 27% and subsequently, the debt turmoil in the eurozone itself eroded some of the confidence in it, which has not yet been fully restored. A country being able to issue debt in its national currency, which is also sought after around the world, is an advantage that allows it to finance itself more cheaply. Of course, the members of the eurozone cannot benefit from this to the same extent as the United States, since monetary policy is in the hands of the supranational ECB. Separately, the European debt market is fragmented (a minimal part is common European securities, and instead the main bonds are Italian, German, French, etc. debt with different characteristics and risk) and, accordingly, much less liquid than the American one. This reduces its attractiveness for institutional investors. In general, the negative of using a stable and strong reserve currency is that it makes exports less competitive. However, for a country like Bulgaria, switching to the euro, especially if it is accompanied by a rating increase, is definitely an opportunity for there to be greater demand for government bonds and for them to end up in more portfolios. Another question is how this tool will be used and whether politicians will be tempted to abuse it. Maintaining the currency board certainly brings benefits, but it also has costs, although not so directly visible. The most significant part of the price of stability is the need to ensure coverage with foreign exchange reserves. Currently, they are about 80 billion leva, or 40 billion euros, which are invested extremely conservatively. Since the BNB's commitment is to be able to immediately and unlimitedly pay out all leva at the fixed rate in euros, this means that the vast majority of investments are extremely liquid. And in the financial world, this is invariably accompanied by lower profitability. In this sense, the price of the board is paid mostly through lost income. After the transition to the euro, the need to maintain such a significant reserve disappears and, accordingly, this will allow several groups of players to extract more income from their funds. First of all, this is the government, which until now has maintained the vast majority of its fiscal reserve on deposit with the BNB. One part is operational funds needed for the state to meet its payments, and it will remain available on accounts. But this also includes 4.5 billion leva of the so-called Silver Fund - created to ensure the sustainability of the pension system and finance possible reforms in it. The funds are not very much, because governments quickly degenerated its original idea and stopped some of the channels through which it was supposed to be filled in order to finance current expenses. In any case, what has already been accumulated could be managed more freely, invested in longer-term instruments and, accordingly, the fund could grow with the realized income. The same applies to other quasi-state institutions, such as the Bank Deposit Guarantee Fund, which stores over 1 billion leva, and also to part of the BNB's own funds - the deposit of the "Bank" department in the board is 16 billion leva. A similar large-scale change is also coming for private banks. Currently, the level of minimum reserves that they must maintain for each lev borrowed is set by the BNB at 12%, while in the eurozone it is 1%. The difference is mainly due to the fact that the BNB has practically no powers of a lender of last resort and therefore requires a larger buffer from banks to meet a possible liquidity crisis. As a result, about BGN 16 billion in resources will be freed up for banks next year. Until now, this amount was sitting in the BNB at 0%, and now banks will have it to grant loans, buy securities or even keep it in the ECB's deposit facility, where they would currently receive 2% interest. Part of the currency board rules is that the BNB cannot easily refinance commercial banks. With entry into the eurozone, this function will be restored and it, together with the ECB, will be able to effectively act as a lender of last resort. This mechanism is called emergency liquidity assistance (ELI). In the euro area, loans under this line are granted by the national central bank of the country where the bank is in difficulty, which also bears any related costs and risks that may arise. The ECB checks and monitors such operations, and its Governing Council, by a two-thirds majority of its members, can limit or object to the provision of emergency assistance. The arguments for such a decision could only be that the support would interfere with the ECB's monetary policy or the objectives and tasks of the Eurosystem. This does not mean that every bank will necessarily be saved, as ELA is only provided for solvent banks. Moreover, the assistance is not free, as a higher interest rate is charged compared to normal ECB operations and high-quality collateral is required. The euro area also has a kind of "lender of last resort", but for countries. This is the European Stability Mechanism (ESM), which is something like a European International Monetary Fund. The institution was created around the debt crisis in the eurozone and is becoming a comprehensive framework to help countries in acute crises and external shocks. In its simplest form, it is a fund made up of contributions from all 20 eurozone members so far, which are currently worth about 81 billion euros. However, this capital allows the ESM to finance itself with debt, as well as to be able to grant loans of up to 500 billion euros if necessary. The institution itself has an AAA rating, which allows it to finance itself cheaply. To some extent, this scheme resembles an insurance pool and Bulgaria will have to contribute its share - in total, according to current calculations, this is 992 million euros, or about 1.2% of the contributed capital. But they are not paid at once, but within 12 years - the country must transfer 120 million euros each for the next 5 years, and the remainder will be due only by 2038. In return, Bulgaria receives a kind of guarantee against financial shocks - internal or external. Each of the other member states has such, which normally gives rise to the familiar concerns that accompany any solidarity mechanism in the style of "we will have to save Greece". Theoretically, of course, it is possible, but there are still protections. The aid from the ESM is not free and, in addition to the loans having to be repaid, they are also accompanied by commitments to structural reforms. During the debt crisis, five countries went through programs from the ESM and its predecessor, the EFSF, and all of them returned the aid. With entry into the eurozone, the powers to conduct monetary policy are completely and irreversibly transferred to the ECB, so it seems that there is nothing dramatically new. The change is that the BNB governor will now be part of the ECB board and will be able to participate in decisions. Bulgaria is one of the small countries and accordingly its vote may rarely be decisive. This is true, but given that the country's participation in the ECB capital is less than 1%, it can hardly be expected to have a decisive weight. Bulgaria is gaining a representative. The Bulgarian Finance Minister will now participate in Eurogroup meetings. And with the ESM, a large part of the important decisions, including the granting of aid, are taken unanimously. So Bulgaria has a chance to increase its political weight in the European plan if it can appoint strong personalities to key positions. The EU's fiscal rules in the eurozone are not only valid, but are also several ideas stricter as a mechanism. Eurozone countries send their budget plans to the EC and the ECB, which gives them assessments and recommendations. On the other hand, however, there are memories of the eurozone debt crisis. It may be in the past and since then, numerous institutional changes have been undertaken to reduce the risk of future ones, but it is a fact that even today, some countries often and even systematically violate fiscal rules without any particular consequences. However, this applies to both eurozone members and those using their own currencies. The current currency board regime is perceived by all analysts as quite disciplining - its very maintenance and sustainability imply balanced budgets and even surpluses. And for long periods there was a broad management consensus around this. Now, one of the fears is that with the adoption of the euro, politicians will find themselves with their hands free and discipline will be loosened. In recent years, this has been happening anyway - the series of political crises, short-lived parliaments and a permanent pre-election situation are loading budgets with more and more populism and social spending. All this reached new peaks in the draft budget for 2026, where, in order to cover the growing costs, it is proposed to raise social security contributions and taxes. However, this move towards dismantling fiscal discipline is met with resistance from employers and even mass civil protests. So, even on the threshold of eurozone membership, stumbling towards a budget orgy is not without alternative.

China's ByteDance, the parent company of TikTok, has signed binding agreements to create a joint venture that would hand over control of the social network's U.S. operations to U.S. and global investors, Reuters reported. The deal could be seen as a major step toward avoiding a U.S. ban on TikTok. The deal for the short-video app, which is used regularly by more than 170 million Americans, follows years of uncertainty for TikTok in the U.S. after President Donald Trump first tried, unsuccessfully, in August 2020 to ban the app over national security concerns. The details of the deal are in line with those outlined in September, when Trump delayed until Jan. 20 the implementation of legislation that would ban TikTok unless its Chinese owners sold it. Trump also said the deal met the conditions of a 2024 sale law. The new U.S. joint venture would be valued at about $14 billion, U.S. Vice President J.D. Vance said in September. Under the agreement, U.S. and global investors, including cloud computing giant Oracle, private equity group Silver Lake and Abu Dhabi-based MGX, will own 80.1 percent of the newly formed TikTok USDS Joint Venture LLC, while ByteDance will retain control of the remaining 19.9 percent. The joint venture will “operate as an independent entity with authority over data protection, algorithm security, content moderation and software assurance in the United States,” according to a memorandum seen by Reuters. The deal, which is set to close on Jan. 22, will end years of efforts by ByteDance to force it to divest its U.S. business over national security concerns. The agreement for TikTok’s U.S. operations includes ByteDance appointing one of the seven members of the new entity’s board of directors, with Americans filling most of the remaining seats. Oracle will be a “trusted security partner” responsible for auditing and validating compliance, including “protecting sensitive U.S. user data, which will be stored in a trusted and secure U.S. cloud environment managed by Oracle,” TikTok said in a memo to employees.