14.07.2022 The limit introduced by BDB for loans granted remains unchanged

The limit of BGN 5 million for granting of financing, which was introduced by the new management of the Bulgarian Development Bank in June 2021, continues to be in force.

In line with its mission, the bank supports with financing only companies that are defined by law as micro-, small or medium-sized companies.

The possibility of additional financing, included in the Articles of Association of the BDB, applies only to restructured loans in cases where the bank would lose more if it did not provide additional limited financing.

An opportunity is provided to rehabilitate distressed companies that have an existing exposure to the bank. The goal is to stabilize them and return them to performance, which will protect the rights and interest of the BDB. Size limits are in place to prevent increased concentration and additional risks.

Item 8.8 quoted in the media today, referring to financing under programs specifically assigned by the government, is present in the Articles of Association dd. 17.07.2014 and is necessary for the implementation of anti-crisis measures, which are notified and approved by the European Commission in each individual case.

Item 8.9, including the possibility of the BDB to finance/refinance companies with liabilities classified in the BNB’s credit register in the "Non-serviced" or "Loss" groups, is in the Articles of Association dd. 05.05.2015. Its purpose is to support viable companies that have fallen into financial difficulties. An important clarification is that as of July 2021, such companies have not been financed.