Bulgarian Development Bank (BDB) contracted with KfW credit line at the amount of 25 million Euro. The agreement was signed today by the executive directors of BDB Dimitar Dimitrov and Sasho Tchakalksi and by the Vice President of KfW Dr. Johannes Feist and Senior Project Manager Martie Julia Lehrhaft. This is the second credit line from the German financial institution that Bulgarian Development Bank manages. The loan is provided without state guarantee.
The financial resources will be used for direct lending to SMEs and for provision of credit lines to commercial banks business financing.
The funds shall be used mainly for financing of long-term projects of companies. The maximum loan amount for one enterprise would be 3 million Euro with maturity of up to 10 years. The loan will cover 100% of the investment costs, as well as the required working capital up to 30% of the investment.
KfW is 80% owned by the Federal republic and 20% owned by the federal governments. In 2009 the bank has financed projects in the economic, socialе scope, environment, improving the business environment at the amount of 64 billion Euro.
The Bulgarian Development Bank is a state financial institution with majority owner Ministry of Finance. In 2009 the bank has attracted without state guarantee credit and guarantee lines from foreign financial institutions of approximately 300 million BGN.
