SOFIA (Bulgaria), August 17 (SeeNews) – State-owned Bulgarian Development Bank (BDB) said on Thursday nine offers have been submitted by local commercial banks for its 300 million euro ($350.7 million) programme for providing financing to small and medium-sized businesses under the European Commission's investment plan for Europe.
The offers were submitted by Allianz Bank Bulgaria, Bulgarian-American Credit Bank, Piraeus Bank Bulgaria, Investbank, Municipal bank, First Investment bank, D Commerce Bank, Eurobank Bulgaria, as well as a joint offer by UBB and CIBank, BDB said in a statement.
The financing of the new programme is jointly provided by BDB and EIB as part of the EU's Investment Plan for Europe. Under the programme BDB will provide up to 50 million euro of financing to each eligible commercial bank for on-lending to small and medium-sized entreprises (SMEs) and it is prepared to assume up to 100% of the credit risk.
Companies will be able to apply for loans of between 3 million levs and 24 million levs, for investment or operational financing purposes, excluding refinancing of existing loans. The loan interest rate is set equal to the Euribor plus a margin between 2% and 4%. The loan repayment deadline is 2032.
The European Commission's investment plan for Europe, also known as the Juncker Plan, focuses on boosting European investments to create jobs and growth by making smarter use of new and existing financial resources, removing obstacles to investment and providing visibility and technical assistance to investment projects.
($ = 0.8554 euro)
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