Loans worth nearly BGN 305 million have been approved under BDB’s two guarantee programs

So far, the Bank has confirmed to guarantee over 1,300 business loans and more than 33,000 interest-free loans for individuals. Commercial banks have approved nearly BGN 305 million under the two guarantee programs operated by the Bulgarian Development Bank (BDB) in support of businesses and individuals, as shown by data as of February 8, 2021.

The number of loans confirmed to be guaranteed is 1,311 of a total value of nearly BGN 164 million. The average amount of the loans is BGN 124,965. Still the highest interest comes from the sectors of trade and tourism, production and transport. Among the supported business are also companies in the field of construction, agriculture, services and advertising.

Although large enterprises can now be funded under the program, only micro, small or medium-sized enterprises have been supported so far. The largest percentage belongs to the small enterprises (51%), followed by the micro-enterprises with 29%, and coming last are the medium-sized enterprises with 20%.

BDB guarantees loans of up to BGN 1 million for small and medium-sized enterprises and up to BGN 2 million for large businesses negatively impacted by the pandemic. The loans are granted by nine partner banks with reduced collateral requirements and reduced interest rates and a possible grace period of up to 3 years.

The partner banks can include both new and existing loans in the program. The condition is for the companies to have experienced difficulties in 2020 and to have not been overdue for more than 90 days in the last year.

The financial institutions granting the loans are Allianz Bank, DSK Bank, Bulgarian-American Credit Bank, Investbank, First Investment Bank, Postbank, D Commercial Bank, UniCredit Bulbank and UBB.

The number of individuals who have applied for interest-free loans according to the commercial banks is 47,841, of them 33,178 have been approved and another 1,930 are currently under consideration. The total value of the approved loans is a little close to BGN 144 million. The average amount is BGN 4,337. BDB guarantees loans of up to BGN 6,900, including to citizens who were on unpaid leave due to the pandemic and are currently unemployed in this time of restrictive anti-epidemic measures.

Applicants can be employees who have been on forced unpaid leave or self-employed persons whose activities have been temporarily suspended due to the emergency situation. The maximum repayment period is 5 years, with a grace period of minimum 6 months and maximum 24 months. The loans are exempt from any charges, fees, commissions and penalties.

The partners in the program are 12 commercial banks. With them, BDB have signed guarantee agreements for nearly BGN 168 million.

Eight of the partner banks continue to accept applications for interest-free loans. These are Allianz Bank Bulgaria, Investbank, First Investment Bank, D Commerce Bank, UniCredit Bulbank, Eurobank Bulgaria, Raiffeisenbank and Central Cooperative Bank. Municipal Bank, International Asset Bank, DSK Bank and UBB have already exhausted their limits under the program and do not accept applications. The period to apply under both programs has been extended to June 2021.