UniCredit Bulbank announced an agreement signing to extend the program with the Bulgarian Development Bank (BDB) for portfolio guarantees in support of the liquidity of micro, small, medium, and large enterprises affected by the COVID-19 pandemic. The program aims at companies that have experienced difficulties in 2020 as a direct negative effect of the COVID-19 pandemic, and which regularly serve their loans without falling overdue for more than 90 days in 2019.
The bank will provide loans of up to 1 mln BGN (approx. 511 244 EUR) for micro, small, and medium enterprises that fit in the criteria: employees up to 249, assets up to 85 mln BGN (approx. 43 455 790 EUR), annual turnover up to BGN 97,5 mln BGN (approx. 49 846 347 EU). The bank also supports large enterprises (commercial companies within the meaning of the Commercial Act) with loans up to 2 mln BGN (approx. 1 022 489 EUR).
The loans have an extended period – up to 6 years, but not later than June 30, 2027. The credits are granted with reduced collateral requirements – coverage of no more than 50% of the amount of the requested funding. Grace periods are allowed for both interest and principal.
REQUIREMENTS TO GET A LOAN
The applicants must meet at least one of the following requirements: decrease in turnover due to the COVID-19 pandemic, presence of uncollected receivables from customers or unpaid accounts payable to suppliers, export contracts cancellation or import deliveries termination, closed their production facilities and offices, or reduced the number of their employee.
The instrument applies to companies from different sectors of the economy, as BDB data shows that the most affected sectors by the pandemic are: transport, tourism, hotels, and restaurants, wholesale.
Source: Bank’s Press Release from April 09, 2021