27.07.2023 BDB's loan from the European Investment Bank is ratified

The Guarantee Agreement between the European Investment Bank (EIB) and the Republic of Bulgaria was ratified by the National Assembly today. The guarantee is granted under a loan between the EIB and the Bulgarian Development Bank for an amount of EUR 175 million. The BDB has started work on structuring loan programmes for small and medium-sized businesses so that access to finance for businesses can be ensured in the short term.

The loans will have a term of up to 12 years and those for green projects - up to 15 years. They can be for investment and working capital, with attractive pricing terms. The aim is to make it as easy as possible for companies to make payments.

With the resources made available, the BDB can provide support to companies whose operations are affected by disrupted supply chains, high electricity prices and the effects of the war in Ukraine. Funds will be disbursed both directly and through financial intermediaries.

Eligible for loans will be small and medium-sized enterprises with up to 250 employees, as well as so-called midcaps - companies with between 250 and 3,000 people, according to the EU classification. Applicants for green finance should meet specific sector and project criteria, which will be verified through the EIB's Green Checker tool.

Companies whose main revenues are generated from gambling activities and those focused on tobacco production, processing and facilitation are not eligible for funding. Also excluded are all sectors not eligible for EU funding, including the production and trade of arms and ammunition, as well as activities generating harmful environmental impacts. In its activities, the Bulgarian Development Bank strictly complies with the applicable banking legislation and related regulations.

In 24 years, the banking group has supported 24,350 companies, which it has reached through various financial instruments with resources of nearly BGN 7.3 billion.