19.12.2022 BDB will support farmers

The Bulgarian Development Bank has developed a new financial instrument to support groups and organizations of producers of agricultural products.

Representatives of the sector stated their needs in October at a meeting with representatives of the Ministry of Agriculture, the Ministry of Innovation and Growth, the BDB and the bank's subsidiary, the National Guarantee Fund.

In response to those needs, the BDB provides funding to farmer groups and organizations, with the requirement that they are recognized by the Minister of Agriculture and have at least one completed fiscal year. Farmers’ associations are a way to increase the influence of agricultural producers in the supply chain and increase the commercial availability of their products.

The associations applying for financing have to be potentially economically viable and have positive equity at the time of signing the contract. The maximum amount of individual working capital loans or credit facilities  is up to 40% of the sales revenue reported for the last financial year. Up to 90% of the investment amount are to be granted for investment loans.

The funds will be provided to cover the liquidity needs of farmers or to finance their investment intentions. The planned financial support is in line with the strategic objectives of the BDB to ensure access of small and medium-sized businesses to sufficient and diversified financing, as well as to support the export of companies and their integration in external markets.