Investment strategies of Bulgarian companies have been substantially affected by the coronavirus (COVID-19) pandemic with 46% of them investing less than planned and just 7% investing more than planned, a survey carried out by the European Investment Bank (EIB) showed on February 8.

Jist a quarter of Bulgarian companies have reported an increased use of digital technologies compared to half of firms in the European Union (50%). Also, a quarter of firms expect a permanent reduction in employment as a long-term impact of COVID-19, which is similar to the EU average (21%). 63% of Bulgarian companies have no investment plans to tackle climate change impact, which is well above the EU average (35%), the survey showed.

Meanwhile, the EIB Group, which consists of the EIB and the European Investment Fund (EIF), has provided loans, guarantees and equity commitments worth €443mn to Bulgaria in 2020, up by 23% y/y, it said in a statement on February 8.

The loans provided by the EIB in 2020 amounted to €115mn, while the EIF committed around €328mn in new operations for small and medium-sized enterprises (SMEs).

This is expected to unlock €1.8bn for SMEs in Bulgaria and will back mostly those companies that are affected by the coronacrisis.

“2020 has been a very challenging year for all of us. The COVID-19 pandemic has triggered an unprecedented global crisis. In this context, I am proud that the EIB Group has increased its financing, in particular for SMEs. Our financial support is helping to improve people’s lives and has an important role in boosting the economic development of Bulgaria during the pandemic. I want to thank all our partners and assure you that we stand ready to support SMEs, regional cohesion, climate action and urban development to create employment and prosperity across Bulgaria,” EIB vice-president Lilyana Pavlova said in the statement.