June 5 (SeeNews) - The Bulgarian Development Bank (BDB) said on Monday that it is launching a mechanism for providing investment loans of up to 5 million levs ($2.7 million/2.55 million euro) to local businesses to finance projects eligible for grants under European structural funds and the national Recovery and Resilience Plan.
The investment loans will have a repayment term of up to six years and a grace period of up to two years for companies applying for grants under national and European programmes, the state-owned bank said in a press release.
Companies will also be able to apply for an unsecured working capital loans of up to 200,000 levs in addition to the investment funding. Both types of loans will be extended under preferential terms.
The BDB will fund the full cost of projects of applicants whose projects have already been approved under the European Structural and Investment Funds (ESIF) and the RRP. The bank will also lend up to 85% of investments costs to potential applicants who have not yet signed their grant contracts.
Bulgaria has so far received the first instalment, in the amount of 1.37 billion euro ($1.5 billion), out of its EU-approved national recovery and resilience facility which is worth 5.69 billion euro overall.
(1 euro = 1.95583 levs)
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