Encouragement Bank was incorporated in 1999 aiming at supporting the development of the small and medium business in the country. Besides the small and medium sized enterprises, the municipalities of Plovdiv region may also benefit from the products of the Bank for financing of projects. Encouragement Bank is a leader on the market for long-term investment financing and provides loans with tenor of 10 years and a grace period of up to 3 years. The Bank is the only bank in Bulgaria that provides financing with reduced requirements for collateral. Majority shareholder of the credit institution is the Ministry of Finance.
The opening of the representation office of Encouragement Bank in Plovdiv has happened immediately before its transformation into a Development Bank. The Strategy for the establishment of a Development Bank, adopted by the Government on 19 April 2007, envisages the creation of a National Guarantee Fund and a Venture Capital Fund as daughter companies of Encouragement Bank. The Bank shall provide long-term investment financing to small and medium sized enterprises, it shall also support the absorption of the Structural Funds of the European Union and shall promote the financing of export-oriented companies and projects.
