29.07.2022 Transparency, accessibility and facilitated financing in the updated strategy of BDB
For the first time, BDB also places sustainable development among its priorities
The updated Strategy of the BDB for the period 2021-2023 was adopted by the Council of Ministers. It will be focused on four priorities in line with the BDB Act and on returning the bank to its mission of supporting small and medium-sized companies.
Ensuring sufficient and diverse funding is linked to the new principles of work – transparency, accessibility and a simplified application process. Companies that have difficulty obtaining financing from commercial banks will also be given access to credit to ensure their viability and business development, as well as to support their supply of raw materials. The main mechanism for speeding up and easing all procedures will be the new digital platform of the BDB - Business Booster, which will start with microcredit services, a business academy and establishment of free online stores.
The export and internationalization of Bulgarian small and medium-sized companies are also among the bank’s priorities by means of special products, including guarantees and leases. This is also related to the function of the BDB to support companies with financing for technological renewal, digitalization and company innovation.
The leading point in the bank’s updated strategy is sustainable financing. By the end of the period, 20% of new loans are expected to be "green". For this purpose, a scoring system is also being prepared for ESG-factors that measure changes in climate, environment, resources, demographics, social values and management. By means of a specially prepared package for assessing the risks and readiness of small and medium-sized companies, BDB will be able to finance their transition to a green, circular and sustainable economy, including projects for social infrastructure and preservation of cultural and historical heritage. The Bank has chosen 5 of the UN Sustainable Development Goals (Social Development Goals): "affordable and clean energy", "decent work and economic growth", "innovation and infrastructure", "responsible consumption and production" and "partnerships for the goals".
BDB’s strategy confirms the adopted funding limit of up to BGN 5 million, as well as the active review and quality management of the portfolio of non-serviced exposures, including old large loans. There is also a goal that the number of supported small and medium-sized companies will reach 1,000 by the end of 2023.
