ProCredit Bank Bulgaria gets 60 mln euro EBRD loan to help Ukraine war-affected SMEs

The loan will help boost the firms' resilience, finances and expansion strategies in the midst of high inflation, supply chain disruption and energy security issues, the EBRD said in a press release.

As much as 20% of the financing is earmarked for the financing of green investments. The funds will also boost capital reserves at ProCredit Bank Bulgaria in line with the EU’s Bank Resolution and Recovery Directive (BRRD), which is designed to guarantee the financial stability of banks across the bloc.

"ProCredit and the EBRD have been partners for many years, sharing the common principle that the development of SMEs – our main customer focus – relies on the provision of adequate funding and financial services. The new loan agreement is further proof of our commitment to supporting SMEs in their role of sustaining the development of the Bulgarian economy," ProCredit Bank Bulgaria executive director Rumyana Todorova said.

The EBRD first announced plans for the loan, which comes in two tranches, in September.

ProCredit Bank Bulgaria, which is part of Germany-based group ProCredit Holding, was Bulgaria's ninth-largest lender as at end-October, according to most recent central bank data.

($ = 0.9495 euro)