22.06.2023 Tsanko Arabadjiev: BDB’s goal is to provide access to green financing for small and medium-sized businesses
BDB joined the Financing the Green Transformation in the CEE Region discussion, part of Green Week 2023, the largest regional forum on the green transition, innovation and industries of tomorrow.
"BDB’s goal is for the green transition instruments to reach small and medium-sized enterprises in Bulgaria – both the family business in Montana and the entrepreneur in Varna to be able to benefit from sustainable financing for their company," said Tanko Arabadzhiev, BDB’s Executive Officer.
Moderator of the panel was Sofia Kasidova, Head of Strategic Development and Green Policies at BDB. Challenges and opportunities that climate policies and the green transition present to economies and societies were discussed.
According to Arabadzhiev, the main problems facing the green transformation are the lack of green projects and access to funding.
"Small and medium-sized businesses don't know how to prepare them yet. The Bank can help them through a project with technical assistance from the EIB," BDB’s Executive Officer said. "We are building internal capacity and a comprehensive framework for sustainable finance. The idea is to be able to guarantee and evaluate green projects so that funds reach small businesses. I hope we will share the results of the project at next year’s forum," Arabadzhiev added.
The Bulgarian Development Bank also has a solution to the problem of access to funding for green projects. It is about to finalize a new loan agreement of BGN 350 million, again with the help of the EIB.
"Within a month or two, BDB will have the resources. Typically, market-based funding works by selecting the projects with the lowest risk and highest return. The question is who will finance the slightly riskier and longer-term projects. I believe that this is where the role of the Development Bank comes in", Executive Officer Tsanko Arabadzhiev said.