15-10-2009 17:05:00
Bulgarian Development Bank (BDB) negotiated with China Development Bank two credit lines totalling EUR 35 million.
The agreement for the first credit line between the financial institutions was signed today in the premises of the Council of Ministers by Dimitar Dimitrov and Sasho Tchakalski, Executive Directors of BDB, and by Zhao Jianping, Assistant Governor of China Development Bank. Boiko Borissov, Prime Minister of R. Bulgaria and Xi Jinping, Vice President of R. China, were also present at the event.
The total amount of the first credit line is EUR 5 million. The resources will be granted without sovereign guarantee and will be used by BDB to provide directly long-term loans to small and medium-sized enterprizes.
Another agreement with China Development Bank, for a second credit line of EUR 30 million, is expected to be signed within one month.
Representatives of the two banks considered the possibility of creating joint financial instruments, which will stimulate the growth of the trade turnover between Bulgaria and China. The Bulgarian Development Bank offered to provide a line for letters of credit, designed to stimulate Bulgarian export to China. It will give Chinese buyers of Bulgarian products the opportunity to obtain deferred payment of up to 24 months, while the Bulgarian exporters will be able to receive their money from BDB immediately after the export.
