Bulgarian Development Bank (BDB) signed an agreement with the Belarus Belagroprombank for issuance of guarantees for export deals (Letter of Credit authorizations) by Bulgarian companies, intended for Belarus, to a total amount of up to 10 million EUR. The aim of this agreement is to stimulate the export and to improve the competitiveness of Bulgarian companies on the Belarus market.
Eligible to participate in the programme shall be all Bulgarian companies having negotiated export of machines, equipment and technologies for re-equipment of Belarus companies, involved in the food, wine and tobacco industries. The export companies will be able to negotiate deferred payment of the supplies for a period of 2 years and to request from BDB discount of their receivables formed on the basis of the actual export. The agreement provides possibility for the exporters to receive their money immediately and not after the term of payment, as agreed in the export contract. The risk undertaken by BDB with the L/C authorizations will be covered by the Bulgarian Export Insurance Agency (BAEZ).
At the end of June 2009, the Bulgarian companies had 15% market share in the equipment supplies for the food, wine and tobacco industries in Belarus. Our main competitors in this sector are companies from Italy, France, Germany, Austria, Denmark, Russia, China, etc.
At the end of June, the trade between Bulgaria and Belarus amounted to USD 27 million. In 2009, the export from Bulgaria to Belarus decreased to 18%. According to 2008 data, the trade between the two countries exceeded USD 101 million, while the positive trade balance was USD 48 million.
