The European Investment Bank (EIB) and UniCredit Bulbank signed a 60m-euro guarantee agreement on October 15th, which is expected to provide new loans of nearly 200m EURto support Bulgarian entrepreneurs affected by the effects of the COVID-19 pandemic.
The program is implemented with the support of the European Guarantee Fund and enables UniCredit Bulbank to support small and medium enterprises, medium-sized enterprises, and large corporations by granting favorable loans to finance working capital, the need for additional liquidity or current and new investments, as well as expansion plans. The financial resources will be provided to entrepreneurs throughout Bulgaria whose areas of activity are in line with the EIB’s mission and objectives, including innovation, the environment, and the development of small and medium-sized enterprises.
Lilyana Pavlova, EIB Vice President, said: “SMEs are the backbone of our economy. Therefore, the support provided through cost-effective and flexible financing during the COVID-19 pandemic is crucial to preserving jobs and stimulating economic growth and prosperity. So far, the EIB Group has approved ten operations under the European Guarantee Fund, which are expected to attract over 1.1 billion EUR in investments in the Bulgarian economy. I am extremely happy that together with UniCredit Bulbank – our long-term partner, today we announce this program that will help economic recovery and employment throughout Bulgaria.”
Tsvetanka Mincheva, Chairwoman of the Management Board and Chief Executive Officer of UniCredit Bulbank, added: “UniCredit Bulbank is a traditional business partner with its leading position in corporate banking. According to our experts, the country’s economy is recovering and Bulgaria is projected to end 2021 with over 4% GDP growth. As a bank, we will do our best to contribute to the recovery and be part of the solution. With the agreement signed today, we will be able to offer our clients a significant new tool to support their investment plans and thus support the economy as a whole. “
Source: Bank’s Press Release from October 15, 2021