Valentin Mihov: BDB spends less and reaches more small and medium-sized companies

30 August 2022

"We are actively working for the Bulgarian Development Bank to spend less and reach more small and medium-sized companies, which could hardly be financed by commercial banks. We are ready to talk to anyone who is in need - both in the BDB and in our microfinance and lease companies," Valentin Mihov, Chairman of the Supervisory Board of the BDB, said in the program "Face to Face" on bTV.

The bank aims to reach 1,000 small and medium-sized companies next year and levels of 50-100 loans per month.

"We have the opportunity for greater flexibility because a large part of our products are guaranteed by the European Guarantee Fund. Thus, the BDB seeks less collateral and self-participation from companies compared to commercial banks," Mr. Mihov pointed out.

According to him, the Bulgarian Development Bank is trying to find that balance in which it does not compete with other banks, but still the companies receiving financing can return it. In order to reach the maximum number of companies in need, the bank will also introduce a digital platform through which they can apply for loans online.

"That way, they won't have to come to Sofia and everything will happen electronically - from the moment they decide they want a loan to the receipt of the funds on their account," Valentin Mihov explained.

He emphasized again that there is no change in the limit of loans granted by the bank.

"New loans that the BDB provides continue to be limited to BGN 5 million. For loans that have been restructured, i.e. companies are stuck for money, we have left the possibility, if it is in the interest of the bank, to provide additional financing. It is limited - for new loans it is up to 20%, i.e. up to BGN 1 million extra, and for larger loans it remains up to BGN 5 million. So far this has not been used and I don't know if it will be used," the Chairman of the Supervisory Board of the BDB explained.

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