Kreditanstalt für Wiederaufbau (KFW)
BDB being a trustee of MF, manages funds granted by Kreditanstalt für Wiederaufbau (KfW) in the amount of EUR 3,5 million, granted to the Bulgarian state for a tenor of 40 years. These funds are provided to selected commercial banks for long-term and medium term financing of SME.
In 2007 BDB concluded a direct loan agreement with the Ministry of Finance, initially backed by the German counterpart through funds provided by KfW. Via this credit line BDB supplies credit lines to partnering banks for financing of small and medium-sized enterprises.
On the 27th of July 2010 BDB signed a direct loan agreement for EUR 25 million with Kreditanstalt für Wiederaufbau. The financial resources are intended for direct lending of small and medium- sized enterprises and/or for credit lines for commercial banks for special-purpose financing for the SME sector. The funds shall be used mainly for financing of long-term investment projects of Bulgarian companies.
In August 2016, the Bulgarian Development Bank signed a contract with KfW for the amount of EUR 100 million. The financing will be used for financing of relevant measures for energy efficiency and the necessary structural measures, implemented by the small and middle-sized enterprises in Bulgaria in the framework of the National Program for Energy Efficiency of Multifamily Residential Buildings. The loan is covered by a state guarantee in accordance to the guarantee agreement between the KfW and the Ministry of Finance.
The National Program for Energy Efficiency was launched via a decision by the Council of Ministries from January27th, 2015. T The program will help to reduce the electricity costs of households and extend the life cycle of the buildings.