ProCredit Bank (Bulgaria) EAD and the European Investment Fund (EIF) signed a guarantee agreement under the Operational Programme “Initiative for Small and Medium Enterprises 2014-2020” with financing from the European Regional Development Fund (ERDF).
The agreement will give ProCredit Bank the opportunity to provide financing to small and medium-sized enterprises at more favourable conditions in terms of interest and collateral. The funds are aimed at companies, which need working capital or are planning the realization of investments to strengthen and develop their main activity, realize new projects or enter new markets.
The initiative aims to secure 600 million euros for the Bulgarian business in the form of loans. Of the 385 million euros from the first tranche under the program ProCredit Bank has 100 million euros or 26% of the total funds.
The new agreement is in line with the policy of ProCredit Bank to support the development of the small and medium business in Bulgaria. At the beginning of 2016 the ProCredit group signed another guarantee agreement with EIF under InnovFin which supports innovative forms and investments in innovation and research activities.
ProCredit Bank is a major partner in programs financed by European institutions, focused on support of Bulgarian business. Under the previous programs „JEREMIE Loss Portfolio Guarantee“, „JEREMIE Funded Risk Sharing“ as well as „InnovFin” the bank has granted over 3,000 loans to small and medium-sized enterprises for over 200 million euros. The great number of companies who obtained financing under the programs and the maintained high quality of the loan portfolio show the significant role of ProCredit Bank in the support of the development of the Bulgarian economy.
„The bank has been working successfully with EIF programs for support of the small and medium-sized enterprises for five years. The excellent results from these programs, and this agreement as well, show the trust of the European Investment Fund in us and the appreciation for the job done so far“, says Reni Peycheva, Executive Director of ProCredit Bank.
The SME Transactions benefit from support from the European Union pursuant to the Operational Programme SME Initiative 2014-2020, with funding by the European Union under the ERDF and Horizon 2020 and by the European Investment Fund and the European Investment Bank.
The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment.
About ProCredit Bank Bulgaria
ProCredit Bank (Bulgaria) EAD is part of the ProCredit group, which is governed by ProCredit Holding, the mother company, based in Frankfurt. The main mission of ProCredit Bank is to support the development of the small and medium business and to foster favourable environment for the growth of the Bulgarian economy.