EIF, Raiffeisenbank Sign New Warranty Agreements for another Mln 150 Euro in Support of Bulgarian Businesses

NW 13:57:31 10-01-2022

EIF, Raiffeisenbank Sign
New Warranty Agreements for
another Mln 150 Euro in Support of Bulgarian Businesses

Sofia, January 10 (BTA) - The European Investment Fund (EIF) and Raiffeisenbank (Bulgaria) signed new guarantee agreements for another 150 million euro to continue supporting Bulgarian businesses during the COVID-19 pandemic. The application period has been extended by another year until December 31, 2022, the bank said.

The agreements enable Raiffeisenbank (Bulgaria) to continue supporting Bulgarian small, medium and intermediate enterprises. The total amount of the guarantee, supported by the EIF, reaches 300 million euro. The funding is provided by the Pan-European Guarantee Fund (EGF) Guarantee Facility, implemented by the EIF with the financial support of the Member States of the European Union, which contribute to the EGF.

Under the agreements, the companies will have access to financing with investment loans with a repayment period of up to 10 years, working capital loans of up to 5 years and revolving loans / overdrafts of up to 4-5 years, depending on the state aid regime, the financial institution explained.

So far, as a result of тхе cooperation between Raiffeisenbank and the EIF, there are agreements worth more than 1.1 billion euro, including more than 560 million euro available to Bulgarian small and medium-sized enterprises to overcome the negative economic effects of the coronavirus pandemic.

"Businesses across Europe continue to feel the economic consequences of the COVID-19 pandemic. The enhanced partnership between the EIF and Raiffeisenbank under the European Guarantee Fund will provide much-needed funding to meet the needs of Bulgarian companies," said Roger Havenith, Deputy Chief Executive Officer of the EIF.

"Support for small and medium-sized enterprises with more affordable financing during pandemic is the key to Bulgaria's economic recovery and prosperity. Under the European Guarantee Fund, the EIB Group has so far approved 12 operations expected to mobilize more than 2.1 billion euro investments in the Bulgarian economy", said the Vice President of the European Investment Bank Lilyana Pavlova.

According to Dobromir Dobrev, Deputy Chairman of the Board of Raiffeisenbank (Bulgaria) in Corporate Banking and Capital Markets, 7,600 projects of Bulgarian small and medium-sized companies have been supported, thanks to the partnership with the EIF, with over 680 million euro. ZH/DT