ZABA, SPAN push lower Croatian share indices
Foreign tourist arrivals to Bosnia's Federation down 0.9% y/y in Jan
Ljubljana stock indices decline in lower turnover
Bosnia's Federation annual inflation slows down to 0.7% in Jan
Croatia's industrial PPI down 1.4% y/y in Jan
Oct 17, 2022 15:17 EEST
October 17 (SeeNews) - The European Investment Bank (EIB) said on Monday it will back over 630 million euro ($613.6 million) of loans to be provided to Bulgarian small and medium enterprises (SMEs) in 2023 by UniCredit Bulbank in what is the first securitisation transaction with a subsidiary of Italy's UniCredit in Central and Eastern Europe (CEE).
The disbursement is made possible by the EIB and UniCredit Bulbank Bulgaria having signed a guarantee on a synthetic securitisation of SME and mid-cap loans that will be provided by Bulgaria's largest lender, the EIB said in a statement.
The notional amount of the guarantee is 90 million euro on an aggregate loan portfolio of 1 billion euro, which was first announced in September.
The SME liquidity mechanism is backed by the European Guarantee Fund (EGF) under the European Union’s 540 billion euro COVID-19 response package.
Bulgarian SMEs from various sectors of the economy will have access to financing at more favourable terms for new eligible projects that will help alleviate the fallout effects on business from the coronavirus pandemic and the ongoing war in Ukraine by improving employment, enhancing innovation and ultimately spurring growth and competitiveness in the Bulgarian economy, the EIB noted.
"We create opportunities for companies in Bulgaria to fulfill their plans and thanks to our longstanding partnership with the European Investment Bank and the agreement that we have signed, we can offer even better opportunities for financing. We are glad that we can provide valuable support for the business under the current challenges and the rising price of financing on a global scale," Tsvetanka Mintcheva, CEO and chair of the management board of UniCredit Bulbank, said.
The deal is is expected to achieve a very strong signalling effect for the Bulgarian banking market, the EIB added.
The lending arm of the European Union and UniCredit Bulbank Bulgaria announced in September they will foster access for Bulgarian SMEs to a total of 1 billion euro in new financing under three separate synthetic securitisation operations.
($ =1.02681 euro)
You have run out of free articles this month.
Sign up in for
and get ten (10) free articles per month or sign up for
and get unlimited access.
Browse our free newsletter options