EIF and Bulgaria mobilise €800mn for SMEs, mid-caps amid coronacrisis

By bne IntelliNews January 23, 2021

The European Investment Fund (EIF) said on January 21 it has agreed with Bulgaria’s economy ministry to boost the measures helping small businesses to overcome the impact of the coronacrisis using proceeds from the JEREMIE initiative.

“The new guarantee instrument is expected to generate up to €800 million of fresh financing and documentary credit for small and medium-sized enterprises (SMEs) and small mid-cap companies in Bulgaria, allowing them to address their financing needs and continue operations,” the EIF said in the statement.

The financing will be made available through six commercial banks - ProCredit Bank, United Bulgarian Bank, Eurobank Bulgaria, Raiffeisenbank, UniCredit Bulbank and DSK Bank.

The new guarantee instrument will support capital loans to SMEs and mid-caps that were severely hit by the coronacrisis and are facing disruption in their production or sales.

“Local companies will be able to mitigate these liquidity shocks by gaining access to working capital finance with reduced collateralisation requirements and/or interest rates. The new guarantee instrument will also support factoring transactions for the first time under the EIF’s guarantees in Bulgaria,” the EIF noted.

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