The funds are granted for a 3 year period. They will be used to finance primary export transactions and investment projects of micro, small and medium sizes enterprises with more than 50% private participation in the capital. The funds can also be used for extending loans for working capital.
This has been the forth consecutive credit line provided by Encouragement bank since the beginning of the year. During February funds for the support of SMEs were granted to “International Asset Bank”, in March – to Commercial Bank “Allianz Bulgaria” and in June – to Commercial bank “ Investbank” AD.
This credit line is provided through a Loan Agreement signed this year in April between the Government of the Republic of Bulgaria and Encouragement Bank on the grounds of an Agreement for financial cooperation concluded in 2001 between the Government of the Republic of Bulgaria and the Government of the Federal Republic of Germany. The total amount of resources available through the Loan Agreement is EUR 4,928,704.66. The resources can be used on a revolving basis for period of 10 years.
The granting of financial resources to bank partners for supporting small and medium sized business in the country and stimulating export are typical activities for Encouragement Bank, which is expected to be intensified even more after its transformation into a Development Bank. The Bank has concluded agreements for co-financing of projects with several international banking institutions and Development banks – the European Investment Bank, the Council of Europe Development Bank, German Kreditanstalt für Wiederaufbau, Austrian Dexia Kommunalkredit Bank, Irish DEPFA Bank, Nordic Investment Bank, the Development bank for North Rhine-Westphalia, Spanish Instituto de Credito Oficial, the Croation Bank for Reconstruction and Development, the Japanease Bank for International Cooperation. In 2006 new agreements with two Russian banks – Moscow Bank for Reconstruction and Development and International Bank for Economic Cooperation have been concluded.
