BDB has approved loans worth over BGN 268 million under two anti-crisis programs

12.01.2021

Nearly two thirds of the funds under the interest-free loan program for individuals already agreed upon

The Bulgarian Development Bank has approved loans worth over BGN 268 million under the two government anti-crisis programs that BDB is managing. The funds have supported 26,221 individuals and provided funding for more than 1,200 companies.

The loans confirmed for SMEs are worth just over BGN 158 million. The strongest interest comes from the sectors of trade and tourism, manufacturing and transport. Also supported are companies in construction, agriculture, services, and advertisement.

Upon introduction of the new parameters approved by EC at the end of November last year in the work of commercial banks, BDB already guarantees the extension of loans of up to BGN 1 million for SMEs and up to BGN 2 million for big companies affected by the COVID-19 pandemic. The loans are extended by nine banks under reduced requirements for security, a reduction in the interest rate and an option for a grace period of up to three years. Partner banks can include both new and existing loans in the program. The applying companies should have experienced difficulties in 2020 and no delays of over 90 days in the last year. The financial institutions granting such loans are Allianz Bank, DSK Bank, Bulgarian-American Credit Bank, Investbank, First Investment Bank, Postbank, D Commercial Bank, UniCredit Bulbank and UBB.

Over 40,000 natural persons have applied for interest-free loans, according to data obtained from the commercial banks, and just over 1,240 are being reviewed at present. The approved loans total more than BGN 110 million, and the average amount is BGN 4,229. 

Following changes in the interest-free loan program for individuals, BDB now guarantees loans of up to BGN 6,900 instead of up to BGN 4,500, as previously intended. The new changes provide individuals who were on unpaid leave due to the pandemic, but in the present situation of restrictive anti-epidemic measures are currently unemployed, a chance to get a loan, too.

Applicants can be employees who have been on forced unpaid leave or self-employed persons whose activities have been suspended due to the emergency situation caused by the pandemic.
The maximum repayment period is 5 years, with a grace period of not less than 6 months and not more than 24 months. The loans are exempt from any fees, commissions and penalties.

The partners in the program are 12 commercial banks, 10 of which are still currently accepting applications for interest-free loans. These are Allianz Bank Bulgaria, DSK Bank, Investbank, First Investment Bank, D Commercial Bank, UniCredit Bulbank, United Bulgarian Bank, Eurobank Bulgaria, Raiffeisenbank and Central Cooperative Bank. With them, BDB have concluded guarantee agreements worth just a little under BGN 160 million.

The deadline for submitting applications under both programs has been extended to June 2021.