Programme objective:
• Facilitating the cooperation between the public and the private sector through financing of investment projects of public-private companies, creating competitive goods, products and services in accordance with the public interest, resulting in increased effectiveness and transparency of the management of public expenditures.
• Providing financing for projects under EU pre-accession and structural funds.
Who meets the application requirements?
Public-private projects developed by small and medium-sized enterprises (in accordance with the criteria of the Act on SME’s) and municipalities with a population of over 10 000 people.
Projects are accepted for consideration after preliminary selection and test performed by experts and consultants of the bank.
What investments meet the requirements for financing?
Any socially beneficial, economically sound and environmental investment on the territory of the respective municipality, performed by public-private companies in all sectors and branches of the economy, producing social and public effect.
Amount of loans
The minimum amount of each loan is BGN 250 000.
Borrower’s participation
The amount of borrower’s participation should be minimum 25 % of the value of the financed investment (exclusive of VAT).
Loan conditions
Term - from 4 to 10 years.
Grace period up to 3 years.
Interest rate - depending on the risks of the project and the term of return on the investment.
Interest on the loan is due monthly.
Repayment of the principal begins after the grace period and is negotiated individually with each borrower.
Collateral
The collateral is in accordance with the banking legislation.
Under certain conditions the bank extends loans under relieved requirements for collateral (up to 85% of the amount of the loan) owing to a guarantee issued by the European Investment Fund under the multi-year programme for small and medium-sized enterprises of the European Community.
Assets that are subject of the investment project are also acceptable as collateral of the loan
