20.03.2020 New business support programs are being prepared with the participation of BDB

The Bulgarian Development Bank will play an important role in ensuring the continuity of liquidity in the banking system, which will be available to small and medium-sized enterprises and facilitate the Bulgarian business. This was announced by the Chief Economist of BDB Iliya Lingorski in a TV interview. Coordination between BDB team and the institutions of executive power is at the highest level and in an accelerated rhythm, so that the capital increase and the enforcement of the measures can be can be a fact as soon as possible.
“As the government’s announcement of the bank’s capital increase is already a fact, BDB will publicly and transparently announce all the criteria under which the new programs in support of small and medium-sized businesses will be put into effect”, Lingorski explained.
It is a system of measures that will maintain and support the banking sector’s capacity to retain access to finance for small and medium-sized enterprises during this period of exceptional circumstances. The focus of the support is a portfolio guarantee that BDB, through its already increased capital, will be able to provide according to certain criteria to the commercial banks and to share the risk with them during the extreme situation. The lending decisions in this exceptional program will depend on the banks and remain market-based. ‘We have gained good experience over the years so far in dealing with commercial banks through guarantee instruments so that they can continue the flow of liquidity to small and medium-sized businesses’, the Chief Economist of BDB said.
According to him, the most important thing at the moment is to maintain the banking system as close as possible to its normal functioning, so that access of entrepreneurs and SMEs to financing is not hampered.
“With its 20 years of experience and exceptional professionals, BDB is very valuable. It was during the previous global financial crisis that it was an important tool for the government to provide liquidity to the real sector. At that time the previous increase of its capital was made. In recent years we have developed a full range of services, including lease and factoring. We have established relationships with commercial banks and active partnerships with the largest international development bans”, Lingorski said.
And after the initial shock of the crisis, which is already felt everywhere in the world, BDB will be able to contribute to programs for accelerated development in the period of economic recovery and return to accelerated and sustainable economic growth.