The funds are granted for a period of 2 years. They will be used for financing investment projects of micro, small and medium sized enterprises with more than 50% private participation in the capital. The funds shall be used for financing loans for working capital.
Since the beginning of the year this has been the third consecutive credit line extended by Encouragement Bank. In February this year funds have been provided to International Asset Bank and in March this year – to CB “Allianz Bulgaria”. Providing financial resources to partner banks to support the small and medium-sized businesses in the country is a typical activity of Encouragement Bank, which is expected to be intensified even more after its transformation into a Development Bank.
The present credit line is extended pursuant to a Loan Agreement concluded between the Government of the Republic of Bulgaria and Encouragement Bank in April this year based on an Agreement for financial co-operation concluded between the Government of the Republic of Bulgaria and the Government of the Federal Republic of Germany in 2001. The total amount of the funds under this Loan Agreement accounts for EUR 4 928 704,66. The funds can be used on a revolving principle for a period of 10 years.
