Bulgarian Development Bank offers a EUR 300 million program under the Juncker plan to support micro, small, medium and mid-cap enterprises with up to 3 000 employees. The funding under the scheme is jointly provided by BDB and EIB within the framework of the “Investment Plan for Europe”.
Under the program BDB is partnering with 10 financial institutions - Allianz Bank Bulgaria, Bulgarian American Credit Bank, DSK Bank, Piraeus Bank Bulgaria, Investbank Bulgaria, UBB-CIBANK (united), Municipal Bank, First Investment Bank, Dbank and Eurobank Bulgaria.
These commercial banks shall receive loans of up to EUR 50 million to be further on-lent following their individual internal regulations. Additionally, BDB is ready to bear up to 100% of the risk under the loans to the Bulgarian enterprises.
Under this program, the companies shall be able to apply for new investment, project and related working capital financing from BGN 3 to 24 million, while refinancing of loans shall be excluded. The interest rate shall not exceed 6M EURIBOR plus 2% to 4% margin. Thus, the maximum interest rate on a loan extended today shall not exceed 3.7% per year.The maximum repayment period is until 2032.
The Investment Plan for Europe is one of the top priorities of the EC Chairman Jean-Claude Juncker. Its main focus is to boost investments and to create jobs and growth by removing obstacles to investment, providing visibility and technical assistance to investment projects, and making smarter use of existing and new financial resources.