BULGARIA EXPECTS TO RECEIVE SOME €12.6 MLN FROM THE EU SURPLUS

The European Parliament (EP) will vote today a deduction of a total of €4.54 bn from the national contributions of the member- states to the EU budget for this year. The total amount represents the surplus for the 2010 financial year. Bulgaria will receive about €12.6 mln, announced officials from the press service of the EP. Out of this amount, some € 2.72 bn are funds allocated under EU programs, which have not been absorbed, and the rest comes from fines, interest rates and late payments, as well as from surpluses resulting from differences in the exchange rates of currencies. 

Today, the European Commission (EC) is expected to present the draft EU budget for the period 2014-2020 as well.

It should be borne in mind that the EC approved the proposed budget for the seven-year period of € 971.5 bn (1% of the EU gross national income). The new financial framework will ensure priority financing in the fields of cross-border transport and energy infrastructure, research, education and culture, strengthening of the external borders and supporting the southern and eastern members of the community. 

As regards guaranteeing the credit default, the form of insurance against losses on bonds has been proposed. Thus, if a customer has purchased certain bonds, but fears that the company can go bankrupt, he could buy Credit Default Swaps, via which the seller will refund the money in case it is declared insolvent and can not pay its bonds. 

With respect to the compensation schemes for investors, the proposed text includes protection of private investors in cases of fraud or bankruptcy of the investment intermediary, mainly through the included "bad advice" by the intermediary firm statement, providing an option for seeking compensation. The lifting of the compensation threshold to € 100,000 (more than twice than the original amount proposed by the Commission) was included as well. According to an amendment, adopted by the Economic Commission, the new rules will reduce by half the time for the complete capitalization of the national compensation schemes (to 5 instead of 10 years) and will enable local authorities, NGOs and private individuals to file compensation requests.