06.04.2023 BGN 885 million has been allocated to businesses and citizens affected by COVID-19 under the two anti-crisis programs of BDB

Bulgarian Development Bank has provided guarantees to 13 commercial banks for 52,915 consumer loans granted by them in the amount of BGN 254.6 million, as well as guarantees for 2,894 loans to commercial enterprises in the amount of BGN 630.4 million. This is shown by the final data on the implementation of the two guarantee programs1 with which BDB supported the economy and the people during the COVID-19 pandemic.

The total amount of loans provided under these anti-crisis measures is BGN 885 million.

BDB has also developed an information portal, through which information on the progress of the measures is published on the website in real time.

The provision of financing for individuals continued until August 2021, and for businesses - until 30.06.2022.

Three years later, the support from the Bulgarian Development Bank continues.

The results in figures:

Small enterprises were the most supported under the business program – they received 40% of the financing provided under the program. Next are medium-sized enterprises with financing of 29% and micro-enterprises with 24%. The average amount of the provided financing is BGN 230 thousand. Although the measure was also open to large enterprises, commercial banks provided financing with a guarantee from BDB to 34 non-SME commercial companies with an average loan amount of BGN 1.37 million.

The largest share of the financing under the business program in the amount of nearly BGN 300 million was received by enterprises in the Southwestern Region with Sofia as its center. Next are the enterprises in the Plovdiv Region with BGN 91 million and those from Northeastern Bulgaria with loans for over BGN 76 million.

Almost half of the resources were aimed at businesses in the sector of commerce (41%). In second place were enterprises in the processing industry – 21%, followed by the transport and hotel business, where 14% of the total amount of financing was directed. The number of enterprises in the sectors of mining industry, education and other activities was the smallest.

63% of companies took advantage of the opportunity to negotiate a grace period.

According to the data of the partnering commercial banks, 80% of the loans were granted without financial collateral thanks to the guarantee from BDB.

Under the program for interest-free loans, 38,722 natural persons were supported, with 52,915 loans granted (it is permissible for one borrower to have more than one loan, but within the limit of BGN 6,900). 29,088 of them used the maximum amount of BGN 6,900 and the average amount received by the rest was nearly BGN 5,600. 26,379 loans were granted with the maximum grace period of 24 months. More than 50% of the loans were granted outside the regions of the four largest cities. Only about 18% were granted in the city of Sofia, 12% in the Plovdiv Region, and 15% in the Varna and Burgas Regions.

In July 2022, the Council of Ministers approved changes to the terms of the program, mainly relating to the possibility of renegotiating parameters of the concluded loan agreements and simplifying the procedure for claiming guarantees. The potentially possible loan repayment period was increased from 5 to 7 years and the permissible grace period of 24 months can now be used in installments.

As of 31.12.2022, at the request of the partnering commercial banks, BDB has paid out guaranteed amounts of BGN 2,832,345 and reimbursable costs under the Program for financing of natural persons in the amount of BGN 63,489. Payments under the guarantees can be claimed to the bank by mid-2029 or in accordance with the terms of the guarantee agreements.

1. With the "Program for guaranteeing interest-free loans to protect people deprived of the opportunity to work due to the COVID-19 pandemic", interest-free and unsecured financing was provided to people temporarily deprived of the opportunity to work due to the restrictive measures taken by the State.
The "Program to support the liquidity of enterprises affected by the emergency situation and the COVID-19 pandemic" allowed the issuance of portfolio guarantees to commercial banks, which provided more flexible terms for business loans for a certain period, under certain conditions and at an individual case-by-case assessment.