Jivko Todorov, Executive Director of BDB: We are working on an option to re-apply for the guarantee program for individuals
Bulgarian Development Bank (BDB) is working on an option for individuals to re-apply for the guarantee program, for which it received a mandate from the government, as well as to extend the application period until June 2021.
The financial institution is awaiting final approval by the EC on the new terms of the program for the business in order to be able to provide larger amount of funding and longer application period. Upon approval, individuals and companies who experience difficulty in a second lockdown will be able to benefit from the both programs. This was stated by the executive director of BDB Jivko Todorov during the Third Banking and Finance Forum "The Future of Money".
“Money has a future, and those we invest now in the economy will guarantee it. BDB strives to support the entire Bulgarian business, from all possible sectors of the economy. That is why we submitted for approval by the EC a new, improved parameters of the program, through which access to credit will be possible for even wider range of companies.
We have set an extension of the application period until the end of June 2021, increasing the maximum amount of loans to BGN 1 million for small and medium enterprises. Large companies will now have the chance to apply for the program for up to BGN 2 million.
After approval by the EC, we will give the opportunity to the companies that have already received funds to apply again until the new maximum amount is reached, "added Jivko Todorov.
The main goal of BDB at the moment is to give a breath of fresh air not only to the Bulgarian business, but also to the individuals experiencing financial difficulties during the pandemic of COVID-19. Experts of the financial institution are working on an option in which individuals can also re-apply for an interest-free loan.
"Our programs are open to absolutely all industries, without any exception. BDB does not provide direct loans, it provides guarantees, portfolio guarantees to the commercial partner banks, as we cannot compete with them ", said the executive director of the bank. According to his words Bulgarian Development Bank will continue to play the role of a partner to the commercial banks in the country, being ready to manage even more programs, if the government delegates a mandate to it.
"BDB Group has subsidiaries, which were established to support the micro and start-up companies. These are the JOBS Microfinance Institution and the Capital Investment Fund," highlighted Jhivko Todorov.
According to the data from the reports of the commercial banks, as of November 24, almost 23,000 people have been approved for interest-free loans, and the total value of the loans is almost BGN 95 million. Under the Guarantee program, in support of the business the bank has approved guarantees for 1004 companies amounting to over BGN 129 million. The SMEs program is ready to take loans of up to BGN 1.2 billion.
BDB also participates in the beam Up lab program, created on the initiative of the Bulgarian Stock Exchange (BSE). For a year, the companies involved in it will get acquainted with the various financing opportunities in order to be able to successfully implement their new ideas.