UniCredit Bulbank and the National Guarantee Fund (NGF), part of the Bulgarian Development Bank (BDB) group, signed the 11th agreement in a row to guarantee a portfolio of loans to finance Bulgarian micro, small and medium enterprises (SMEs) with the total size of BGN 200 million (approx. EUR 102 million).
The purpose of the agreement is to implement a guarantee scheme that will provide both existing and startups in Bulgaria with bank lending with preferential terms through a risk-sharing mechanism.
With the help of the guarantee scheme, UniCredit Bulbank also supports the development and implementation of projects co-financed under the operational programs of the European Union.
The agreement was signed by Tsvetanka Mincheva, CEO of UniCredit Bulbank, Andrea Tognetti, Executive Director, Member of the Management Board of UniCredit Bulbank and Director of People and Culture, Todor Todorov, Executive Director of the National Guarantee Fund, and Zaharina Todorova, Member of the Council of the Directors of the National Guarantee Fund.
“We are grateful for the long-standing partnership with the National Guarantee Fund. By joining our joint efforts, we manage to provide opportunities for easy and quick access to financing, and so far together we have helped more than 2,500 Bulgarian enterprises to start or develop their business,” – commented Tsvetanka Mincheva, CEO of UniCredit Bulbank.
“The guarantee from the NGF covers up to 50% of the amount of the newly granted investment and revolving loans, supplementing or replacing the necessary collateral for them. In this way, the agreement makes it possible to guarantee a portfolio of loans for small and medium-sized businesses in the amount of up to BGN 200 million (approx. EUR 102 million). We are confident that this cooperation will contribute to new success stories of Bulgarian entrepreneurship,” – said Iliya Karanikolov, Executive Director and Chairman of the Council of Directors of the BDB.
To date, the guarantees issued in favor of UniCredit Bulbank customers total BGN 336 million (approx. EUR 172 million), and 2,646 small and medium-sized enterprises have received support.
With the new joint initiative, UniCredit Bulbank and the National Guarantee Fund continue their efforts to support the development and increase the competitiveness of Bulgarian SMEs, as the backbone of the Bulgarian economy.
Source: The press release by UniCredit Bulbank dated February 10, 2023