IFC, a member of the World Bank Group, extended a $10 million credit line to United Bulgarian Bank to increase its lending to companies in Bulgaria, particularly small and medium enterprises involved in international trade.

 

Part of IFC’s Global Trade Finance Program, the credit line will help United Bulgarian Bank, a leading bank in Bulgaria, grow its trade business as it seeks to attract new clients in export-generating industries.

 

The Global Trade Finance Program supports trade in emerging markets by providing partial or full guarantees for individual trade transactions backed by IFC’s triple-A rating.

 

United Bulgarian Bank becomes the third financial institution in the country to join the Global Trade Finance Program. By expanding the financing available for international trade, the program will help Bulgaria develop its export sector and contribute to the overall growth of the country’s economy.

 

“This new trade line, which is the first joint project of IFC and United Bulgarian Bank, represents an important milestone in cooperation of our institutions,” said Stilian Vatev, UBB Chief Executive Officer. “UBB and IFC have joined forces in an effort to encourage the sustainable development of import/export-oriented companies in Bulgaria, recognizing their key role in the economy.”

 

Ed Strawderman, Regional Head of Industry in Europe, Central, Asia Middle East and North Africa, said: “The growth of export industries will be critical for Bulgaria to rebound fully from the euro zone crisis. IFC’s partnership with United Bulgarian Bank demonstrates our support for the country’s economic development by enabling more small and medium enterprises to reach new markets through international trade.”

 

Since its inception in 2005, the Global Trade Finance Program has issued more than 19,000 guarantees totaling $32 billion to banks for trade-related payment obligations of their financial-institution clients in emerging markets. In 2013, IFC provided $7 billion to support emerging-market importers and exporters, and 79 percent of all guarantees went to small and medium enterprises. The program includes more than 550 partner banks in 150 countries.