EThe loans will be for investments in exports, purchase of raw materials and other materials for the production of goods for export, purchase of Bulgarian goods for export purposes as well as discount on loans for export deals.
The Bank will finance up to 75% of the value of the investment projects and up to 80% of the value of the export deals. The maturity for investment projects is 10 years and up to 18 months for export loans. The financing shall be approved within 15 days for the investments projects and within 7 days for the export deals.
Stimulating export is a priority activity of Encouragement Bank, which shall be transformed into a Development Bank. The Bank has agreements for co-financing projects with many international financial institutions and Development banks – Dexia Kommunalkredit Bank, Depfa Bank, Black Sea Trade and Development Bank, Nordic Investment Bank, Development Bank of North Rheine Westphalia, Instituto de Credito Oficial (ICO), Croatian Bank for Reconstruction and Development, Japanese Bank for International Cooperation and others.
During 2006 the Bank entered into agreements with two Russian banks – Moscow Bank for Reconstruction and Development and International Bank for Economic Co-operation for financial facilities on export deals as well as simplified schemes on payment transactions between the clients. As an agent of the German credit institution “Kreditanstalt für Wiederaufbau”, the Bank grants financing for small and medium enterprises to selected partner banks.
Encouragement Bank is a shareholder in the European Investment Fund. Through its Guarantee facility concluded with the European Investment Fund, Encouragement Bank is the only Bank in Bulgaria which grants loans with lower collateral going up to 85%.
