The European Investment Fund (EIF) said on January 21 it has agreed with Bulgaria’s economy ministry to boost the measures helping small businesses to overcome the impact of the coronacrisis using proceeds from the JEREMIE initiative.
“The new guarantee instrument is expected to generate up to €800 million of fresh financing and documentary credit for small and medium-sized enterprises (SMEs) and small mid-cap companies in Bulgaria, allowing them to address their financing needs and continue operations,” the EIF said in the statement.
The financing will be made available through six commercial banks - ProCredit Bank, United Bulgarian Bank, Eurobank Bulgaria, Raiffeisenbank, UniCredit Bulbank and DSK Bank.
The new guarantee instrument will support capital loans to SMEs and mid-caps that were severely hit by the coronacrisis and are facing disruption in their production or sales.
“Local companies will be able to mitigate these liquidity shocks by gaining access to working capital finance with reduced collateralisation requirements and/or interest rates. The new guarantee instrument will also support factoring transactions for the first time under the EIF’s guarantees in Bulgaria,” the EIF noted.
Related Articles
Financial Stability Board publishes recommendations on nonbank leverage risks
Global regulator, the Financial Stability Board, published final policy recommendations to address financial stability risks from nonbank financial intermediation leverage, giving authorities ... more
Non-performing loans hit historic low in CESEE, but early warning signs emerge, says EBRD
Non-performing loans (NPLs) in central, eastern and south-eastern Europe (CESEE) fell to their lowest levels since the global financial crisis in 2024, but early indicators suggest rising risks ... more
Most Read
-
Putin to skip Rio BRICS summit over ICC warrant as Xi signals no-show
15 days ago
-
Turkey yet to prove rare earth deposit has suggested “giant” potential despite reported processing talks with China
10 months ago
-
Uproar in Mongolia as development bank reveals scale of risky loans and NPLs
3 years ago