UBB grants loans worth EUR 74 million in support to small and medium businesses under a new joint programme with the European Investment Fund (EIF)
29 September 2021
The successful cooperation b/w UBB and the EIF continues with the new agreement under the Pan-European Guarantee Fund (EGF) Programme. As result, UBB will form a portfolio of EUR 74 million offering preferential conditions to small and medium companies striving to overcome the aftermaths of COVID-19. The programme also provides an opportunity for a full refinancing of liabilities, a key feature of the new guarantee instrument.
The EGF Programme forms part of the overall recovery package of the EU seeking to provide a financial support of EUR 540 billion in aggregate to the most severely impacted sectors from the EU economics. The scheme also belongs to the new generation of financial instruments fully aligned with the green policy of the EU and in harmony with UBB plans and goals seeking to encourage sustainable development in business. The Programme is being implemented by the European Investment Fund with a financial support ensured through the contributions by the participant member-states in the EGF.
The EGF instrument provides 70% coverage of the amount of each investment and working capital financing, free of change for the end users. The maximum financing on a level Borrower and related parties is approx. BGN 2.2. million as also limited financing of companies active in the agricultural sector is eligible. The maximum tenor for the investment loans is up to 120 months while for the working capital financing is up to 36 months.
“Small and medium-sized companies are a crucial actor in each country regardles of its size and income level. Their role in supporting the sustainable development becomes of a paramount importance. Since SMEs are a valuable player in the economy, I am certain that the program, with COVID-19 still being a big part of our lives, will provide them with yet another useful instrument for their steady and sustainable growth.”, said Mr. Peter Roebben, Country Manager of KBC Group for Bulgaria and Chief Executive Officer of UBB.
This is the 8th guarantee agreement signed b/w the EIF and UBB. The total lending volume of UBB included under the EIF instruments exceeds BGN 1 billion. The successful partnership allows UBB to offer access to preferential financing and to support the development of Bulgarian business.