06.12.2021 New Program by the NGF and the Black Sea Trade and Development Bank will provide BGN 150 million for SME businesses in the crisis environment
This is the first joint risk-sharing instrument between BDB’s Group Fund and the international bank
An agreement on a new guarantee instrument to support SME businesses in Bulgaria going through the COVID-19 pandemic was signed between the National Guarantee Fund (NGF) – part of Bulgarian Development Bank Group and Black Sea Trade and Development Bank (BSTDB). The program will provide new financing of BGN 150 million for hundreds of Bulgarian SMEs from different sectors offering lower collateral requirements and better interest rates.
It will be financed through commercial banks and it shall cover up to 80% on the disbursed loan amount.
This is the first joint risk-sharing guarantee instrument between the two institutions and the first shared guarantee instrument in National Guarantee Fund’s portfolio. The agreement was signed by NGF’s Executive Director Todor Todorov and BSTDB’s President Dmitry Pankin. The Deputy Minister of Finance Monika Dimitrova-Beecher also participated in the official event.
The program will strengthen the strategic partnership between Black Sea Trade and Development Bank and Bulgarian Development Bank. The National Guarantee Fund is about to open a call for expression of interest to all banks in Bulgaria, and the guarantee limit shall be distributed across the submitted applications. The inclusion period is set to two years. The guarantee will remain valid for another 36 months after the end of the inclusion period.
About NGF:
The National Guarantee Fund was created in 2008 as a part of the Bulgarian Development Bank Group. The Fund issues guarantees that complement the collateral required by the commercial banks under loans for Bulgarian businesses. Thus, it facilitates the access to financing for SMEs and contributes to the decrease of granted loans’ interest rates. NGF’s support enables loan financing to start-ups and to companies with no previous credit history. As per today the Fund has issued guarantees for BGN 1,340 million and has supported over 10,000 companies.
About BSTDB:
The Black Sea Trade and Development Bank is an international financial institution which was established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine in 1997 in order to support the economic development of the countries within the region. Its authorized capital of EUR 3.45 billion. Bulgaria is a shareholder at BSTDB and holds 270,000 shares (13.5% equity participation). As announced in 2020, finalizing the mutual guarantee program with NGF is part of the redirection of funds in order to overcome the effects of the COVID crisis and support SMEs.
