- EBRD provides €60 million loan to Bulgaria’s ProCredit Bank
- Funds to be used to finance SMEs impacted by the war on Ukraine
- At least 20 per cent of projects to have green credentials
The European Bank for Reconstruction and Development (EBRD) is providing €60 million to Bulgaria’s ProCredit Bank to strengthen the resilience of small and medium-sized enterprises (SMEs) battling the effects of the ongoing war on Ukraine.
The proceeds of the loan will be used to expand financial support to Bulgaria’s SMEs, which account for almost three-quarters of the country’s employment and more than 60 per cent of total value added. As the war in Ukraine continues to disrupt the global economy, Bulgarian SMEs are facing energy security issues, inflation and supply-chain problems. They need financial support to continue operating and expand their businesses.
In addition to increasing the resilience of the country’s SMEs and overcoming financial gaps, 20 per cent of the loan will be allocated to financing green investments. The loan will also comply with the European Union’s Bank Resolution and Recovery Directive and help ProCredit Bank to achieve its regulatory targets.
Anca Ioana Ionescu, EBRD Head of Bulgaria, welcomed the partnership, saying: “For the EBRD, supporting SMEs is a priority – promoting resilience, sustainable growth and improved competitiveness as economies continue to experience the adverse effects of the war on Ukraine. We are very pleased to provide this loan, as it will benefit the real economy of Bulgaria and reinforce our relationship with ProCredit Bank, a key partner serving the SME ecosystem. The EBRD remains committed to supporting the economies in which it operates through these difficult times.”
Rumyana Todorova, Member of the Management Board and Executive Director of ProCredit Bank, said: “ProCredit and the EBRD have been partners for many years, sharing the common principle that the development of SMEs – our main customer focus – relies on the provision of adequate funding and financial services. The new loan agreement is further proof of our commitment to supporting SMEs in their role of sustaining the development of the Bulgarian economy.”
ProCredit Bank (Bulgaria) EAD was founded in October 2001 by an alliance of international development-oriented investors. Today, the bank's sole owner is ProCredit Holding, based in Frankfurt am Main, Germany. ProCredit Holding is the parent company of the development-oriented ProCredit group, which consists of commercial banks for SMEs, with primary operational focus on south-eastern and eastern Europe.
The EBRD is a leading institutional investor in Bulgaria, with cumulative investment of more than €4.3 billion in 278 projects in the country to date. The Bank’s focus in Bulgaria remains on enhancing private-sector competitiveness, strengthening the financial sector and narrowing the infrastructure gap.