NGF Increases Its Capital by Nearly €3 Million
The increased capital strengthens the NGF’s financial stability and expands its capacity to provide guarantees in support of Bulgarian businesses.
The National Guarantee Fund (NGF) has increased its capital by nearly €3 million, from €40,904,000 to €43,869,540. The decision was taken by the Management Board of the Bulgarian Development Bank (BDB), which is the Fund’s principal.
The increased capital strengthens the NGF’s financial stability and expands its capacity to provide guarantees in support of Bulgarian businesses.
The NGF works with 14 commercial banks and credit institutions in Bulgaria. Through its guarantee programmes, the Fund facilitates access to financing for small and medium-sized enterprises (SMEs) by sharing the risk associated with loans granted by financial institutions. This enables businesses to obtain loans on more favourable terms, including lower costs, longer repayment periods and less stringent collateral requirements.
Since its establishment in 2008, the NGF has supported 21,650 projects involving 19,000 small and medium-sized enterprises, while financing provided by commercial banks with the Fund’s guarantees has exceeded €2.6 billion.
The capitalisation of profits generated through the Fund’s operations is part of the BDB Group’s long-term commitment to improving access to financing for the growth and development of Bulgarian businesses.