Financial Reports 2010

Statistics about the condition of business in Bulgaria in 2010 show some good results in combating the negative consequences of the economic crisis –The monetary board is stable and has extensive political support, the bank system is stable and has net profit, despite the increase of bad credits. Bulgaria follows a reasonable fiscal policy. The deficiency of the consolidated budget is relatively low - 3.8% of GDP.
Despite these favorable indexes there is data, showing the difficulties on the way of Bulgarian Economy. The crisis is passing slowly and painfully. Inflation for 2010 is 4.5% - twice the average European and that set in the budget. Unemployment coefficient in 2010 is 10.2- around 350 000 unemployed/, where the growth toward 2009 is 3.7 points up. Because of the worsened liquidation of the companies, bank crediting is decreased, hence entrepreneurship initiative is suffocated and the investment size is decreased. European funds are assimilated very slowly and insufficiently. Stock exchange is poor.
Households in Bulgaria and the citizens harshly feel the consequences of the crisis. About 1/3 of the households are directly affected. They are forced to limit basic expenses of their daily lives, such as food, medical services, and education. 41 % of the households limit basic communal, 29% limit basic food consumption, 8% omit one meal a day. Payment of social and health insurance is cut down, which brings direct danger and risk of getting ill or losing a job. Unemployment is, 5% of the employed have lost their jobs, and 30% have been affected by cut backs in their salaries or working hours. The most vulnerable of the population - those with lower education, as well as roma population face the highest risk of losing their jobs.
As the crisis in North Africa unwinds, petrol price is going up; it is very likely for the economic situation to worsen again and the feeble economic advance to be stopped.
In this unfavorable economic environment Bulgarian Red Cross did not either stop or cut its support for the vulnerable. Very often BRC was the only organization to give a hand to those in the lowest income bracket. The assistance with food products under the EU program for distributing interventional supplies proved very important. Under that program 10 003 tons of food were distributed and 242 000 individual and 611 institutional beneficiaries were supported.
The difficulties induced by the economic crisis were a serious challenge to the management of the organization on national and regional level, as well as the whole staff. The reasonable economic balance had to be found so that the activities stayed financed in an acceptable way. The financial stability was maintained at the price of many efforts and as a consequence of the understanding, cooperation and empathy on behalf of the organization’s staff.
Concerning incomes, there was e flexible policy toward partners, tenants, state institutions etc, in the purpose of ensuring resources enough to cover current expenses. A great success is the fact that the organization managed to keep the financial resource intended to be used in most critical situations. Expenses were permanently monitored. Priorities were determined daily: the financial resource was directed to priority tasks in concordance with the strategy plan of the BRC, investment expenses were delayed, and new perspectives to save money were sought for.