ANNOUNCED AS TEMPORARYNo
On 18 March 2015, the Bulgarian Development Bank (BDB) established a new funding program for small and medium-sized companies through the national commercial banks.
Under the new program, BDB will provide financing to banks of up to BGN 150 million (ca. USD 86 million) for loans related to investment and working capital loans issued to Bulgarian SMEs. Furthermore, BDB also specified that if the program is successful, the total amount would be increased to BGN 350 million (ca. USD 200 million).
The program specifications denote that commercial banks also have the option to ask BDB to assume the risk of up to 30% of the value of the individual loans.
The interest rate at which BDB will grant banks the funds is 3-month EURIBOR + 1.8 or +1.9, depending on whether BDB assumes the risk.
Lastly, small and medium-sized business will be offered loans of up to BGN 3 million (USD 1,714,579) at an annual interest rate capped at 3-month EURIBOR + 4.9%.
BDB will also allow for refinancing of investment loans granted after 01.07.2014 but before the launch of this new program. Companies investing in areas of high unemployment such as Vidin, Montana, Razgrad, Silistra, Targovishte, Shumen, Sliven, Yambol, Pazardzhik, Smolyan and Kyustendil can apply for refinancing of loans granted after 01 January 2014.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
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