UBB has signed an agreement for offering of a Recovery Programme in support of businesses by means of a guarantee from the Fund of Funds
24 June 2021
UBB has concluded an agreement with the Fund of Funds for amending and supplementing the Portfolio Guarantee to Overcome the Effects from the Covid-19 Pandemic within the framework of the Recovery Programme, announced by the government. It has as its purpose to provide access for small and medium businesses to resource of approximately BGN 2.5 billion.
This Programme will facilitate the access of businesses to loans for recovery of the activity after the gradual removal of the measures in line with the pandemic, triggered by Covid-19. Companies will be able to receive fresh funds for meeting their current liquidity needs, but also such for new investments, transformation and growth. The updated terms and conditions of the guarantee envisage loans to be disbursed within short deadlines, with minimum administrative burden and without the need of tangible collateral.
Among the other advantages for businesses there are shorter deadlines for obtaining approval and for drawdown; possibility to negotiate a 12-month grace period; deferral of repayment up to 84 months; clarity of the process and minimization of the administrative burden; financing up to BGN 3 mln. and up to 70% of the turnover for 2019 or 2020, depending on the year when the turnover was larger; accessibility in all branches of the partner banks, thus ensuring excellent coverage throughout the territory of Bulgaria.
End beneficiaries are small and medium-sized enterprises (SME).
„With this amendment to the Programme we are being enabled to support mainly clients, having a clear strategy about overcoming the consequences from the crisis, showing readiness to not only recover their routine levels and work pace, but also planning for expansion and upgrade of their business, however who do not have idle assets, which they could offer as collateral. Financing under the programme will ensure additional working capital for companies, experiencing temporary liquidity problems or loans for making of investments, related to a changed work mode – optimized and digitalized one. We have given priority to the launching of this programme, so that the employees of UBB, responsible for working with business clients, could become aware of its terms and conditions and could start offering it as from the beginning of July.“, commented Desislava Simeonova, Executive Director SME and Corporate Banking at UBB.
This financial instrument is being implemented in accordance with Priority Axis 2 Entrepreneurship and Capacity for Growth of SMEs under Operational programme Innovation and Competitiveness 2014 – 2020, co-financed by the European Regional Development Fund.
About the Fund of Funds
The core mission of the Fund of Funds is to structure and manage financial instruments, co-financed by the European structural and investment funds. The Company manages public resources worth BGN 1.2 billion and offers on the market a wide range of debt, equity and quasi-equity instruments in an attempt to ensure easier access to financial resources for the private and public sector in Bulgaria while employing innovative and flexible financing tools.