28.09.2020 Approximately BGN 80 million were approved by commercial banks under the Bulgarian Development Bank’s interest-free lending program

The approved requests for credits from the commercial banks under the anti-crisis program for interest-free lending to natural persons amount to approximately BGN 80 million. This is what Bulgarian Development Bank’s data as at 28th September show.

The requests to grant loans now exceed 30,500 as almost 19,000 have already been given approval and 837 more are currently being considered. Almost one-third of them are from persons employed full-time and the others are from self-employed. The average value of the approved loans is BGN 4,228. The deadline for application is until the end of 2020.
The partners under the Guarantee Program for granting interest-free loans up to BGN 4,500 to help people deprived of the possibility to work due to the COVID-19 pandemic are: Allianz Bank, DSK Bank, Investbank. International Asset Bank, UBB, Municipal Bank, First Investment Bank, Post Bank, Raiffeisenbank, D Commerce Bank, Central Cooperative Bank, and UniCredit Bulbank.

Bulgarian Development Bank does not examine the credit requests but includes the loans that have already been approved by the commercial banks into the issued portfolio guarantee.
Bulgarian Development Bank has entered into guarantee agreements for BGN 149,427,500 with the partners under the program. Almost 55% of the funds have been agreed upon. The remaining funds are available for performance of the guarantee agreements, for provision of guarantee limits to other banks as well as for increasing the limits of those which are already participants in the program if they wish so.

The purpose of the measure is to support the furloughed employees and self-employed who have discontinued their operations as a result of the COVID-19 pandemic. They have the opportunity to get a loan to the amount of up to BGN 4,500 granted as a one-off sum or in three tranches of BGN 1,500 each. The maximum repayment period is 5 years with a grace period of minimum 6 months and maximum 24 months. The loans are free of fees, commissions and penalties.
The candidates for interest-free loans must have been furloughed or must have discontinued their operations due to the pandemic. Under the updated requirements the persons who want to apply may do so even after they have returned to work. Self-employed persons must have had a drop in their income of at least 20% in 2020 as the requirement to have declared social security contributions for a period of at least the past 6 months applies for all candidates.