The National Guarantee Fund and SG Expressbank signed an agreement for a guarantee line for 5 millions Leva.
The Agreement intends to facilitate the access of Bulgarian small and medium enterprises to bank funding through additional credit guarantees. The Fund will cover up to 50% of the credit risk and the other 50% will be covered by SG Expressbank.
The NGF offers two guarantee programs. The first will issue guarantees to small and medium enterprises for investment credits. Emerging and existing companies, active for more than a year, will be able to apply for these. The maximum guaranteed amount for emerging companies will be up to 250,000 BGN and for existing companies it will be up to 500,000 BGN. The guarantees will apply to credits with terms up to ten years.
The second guarantee program is intended for export-oriented companies, wishing to draw a turnover credit. The guaranteed amount under that scheme will be 250,000 BGN and the guarantee's term up to 2 years.
SG Expressbank is the tenth credit institution to sign a guarantee agreement with the NGF. So far the Fund has signed agreements with DSK Bank, UBB AD, Raiffeisenbank, FIB, Piraeus Bank Bulgaria, CIBANK, Allianz Bank, MKB Unionbank, International Asset Bank. The agreements’ total value is 76 millions Leva.
The National Guarantee Fund is the Bulgarian Development Bank affiliate and it was founded in 2008. The experience of guarantee funds from Germany, France, Austria, Italy, Belgium and other European countries was used in the establishment of the Fund and the development of the guarantee schemes.
