UBB has started offering the new guarantee programme JEREMIE Trade Finance COVID-19
17 Decempber 2020
Following the successful start of the COSME COVID-19 and InnovFin COVID-19 programmes United Bulgarian Bank has also initiated the offering of the new guarantee programme JEREMIE Trade Finance COVID-19. The Agreement between United Bulgarian Bank and the European Investment Fund (EIF) will guarantee transactions, granted for the financing of small, medium and small mid-cap enterprises (with staff of up to 499 people) in the amount of EUR 170 million.
The new programme provides partial collateral opportunity for bank guarantees, letters of credit, total limits for working capital needs and issuance of bank guarantees and/or letters of credit, working capital loans, including overdrafts and transactions, related to trade receivables (factoring) in euro (EUR), Bulgarian leva (BGN) and US Dollars (USD), provided by UBB until 31.03.2023, with a period up to 60 months, however no later than 31.12.2025.
The maximum amount at transaction level is EUR 3 million for SME and EUR 1 875 million for small and mid-cap enterprises, as the programme will guarantee 80% of the loan amount. By means of JEREMIE Trade Finance COVID-19 UBB offers financing at preferential prices and relaxed collateral requirements up to 50% of the loan amount, based on its discounted value.
The programme enables refinancing of up to 30% of the loan amount, as the transaction should not be guaranteed with another financial instrument of the EIF. This distinguishes the programme from the currently offered financial instruments of the European Investment Fund.
The parameters under the scheme will be applicable until 31.03.2023 without formal requirements for proving the impact of COVID-19 on the applicants.
„Through our partnership with the European Investment Fund we continue supporting small and medium-sized businesses in Bulgaria in the abnormal economic environment, triggered by COVID-19. In the context of the present day we want more than ever to be part of the recovery process and I am glad that this instrument is yet another way of achieving this goal.“, commented Peter Andronov, Chief Executive Officer of United Bulgarian Bank.
JEREMIE is an initiative of the European Commission and of the European Investment Fund, being the abbreviation of “Joint European Resources for Micro to Medium Enterprises”. This Programme is fully focused on financing and support for Bulgarian companies, as its main aim is development of small and medium-sized enterprises.