BDB extends application deadlines under its guarantee programs in support of individuals and businesses
The Council of Ministers has approved an extension to the application deadline under BDB’s interest-free loan guarantee programme for individuals temporarily unemployed due to the Covid-19 pandemic.
The deadline to apply for an interest-free loan under the programme is extended until August 31, 2021 or until the guarantee limits for financing by partner commercial banks are exhausted.
BDB is in the process of signing annexes with the banks that still have a free limit for financing under the programme – Allianz Bank, Investbank, Central Cooperative Bank and Postbank, so that the process of accepting applications can be resumed.
The anti-crisis measure enables the extension of interest-free loans of up to BGN 6,900 to individuals working on an employment contract, self-employed, agricultural producers and seasonal workers who have ceased working due to the Covid-19 pandemic. The maximum repayment period is 5 years, with a grace period of at least 6 but not more than 24 months. The loans are exempt from fees, commissions and penalties.
The Portfolio Guarantee Programme in support of the liquidity of the companies affected by the pandemic was also extended. The deadline for including the loans in the guaranteed portfolio has been extended until December 31, 2021. Companies can apply for financing until December 20, 2021.
The programme is open to all sectors of the economy and is implemented by the partner commercial banks throughout the country. BDB provides guarantee coverage of 80% of the principal of each loan under the measure.
At the initiative of the Ministry of Economy, work is underway to add the Business Finance Programme to the new Recovery Programme announced in support of businesses through guarantees from the Fund of Funds and BDB.
So far, the Bulgarian Development Bank has approved loans for over BGN 559 million under the two state anti-crisis programs, supporting 52,320 individuals and providing opportunity for financing to more than 1,800 companies.