The Bulgarian Development Bank (BDB) and the European Commission have signed an agreement for a €40 million guarantee. In addition to the €125 million guarantee issued in 2023 – now totaling €165 million, this will allocate on-lending resources by commercial banks for small and medium-sized enterprises (SMEs) in the country, as well as for sustainable investments of companies and households amounting to over BGN 2.5 billion (around € 1.2 billion).
The agreement was signed by the European Commissioner for Economy, Paolo Gentiloni, the Executive Director of the BDB, Iliya Karanikolov, and Teodora Pesheva – member of the Management Board of the bank. The event was also attended by the Deputy Prime Minister and Minister of Finance Lyudmila Petkova, the Minister of Innovation and Growth Rosen Karadimov, as well as the Acting Chairman of the Supervisory Board of BDB, Delyana Ivanova.
In 2023 BDB completed an audit process and was approved by the European Commission to become an InvestEU Implementing Partner. The bank is among 17 partners of the Programme that successfully met the requirements of the financial regulations, allowing them to manage EU funds and budget guarantees.
The programme aims to encourage SMEs in increasing their competitiveness by supporting innovation, digitization, green transition, and growth. As a partner, the BDB will help the country's transition to a circular, resource-efficient and sustainable economy.
In July 2024, the BDB started market consultations among commercial banks in the country for the offering of two financial products aimed at small and medium-sized businesses, and at building sustainable infrastructure. Guarantee programmes will be set up for supporting SMEs, their innovation and digitization plans. Support will be provided for investments in waste and water sector, as well as in the intermodal transport projects.
Thanks to the EU guarantee, improved conditions can be offered to the business, such as lower collateral requirements and convenient price conditions.
· Investments in the Bulgarian business amounting to over BGN 2.5 billion (around € 1.2 billion) will be supported by the bank as an implementing partner of the InvestEU Programme.
· The InvestEU programme aims to mobilise more than €372 billion in additional investment across Europe over the period 2021-27 for European Union policy priorities. BGNES
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