29.10.2020
The program of the Bulgarian Development Bank in support of liquidity will also cover large enterprises
The Government adopted a Decision amending the Portfolio Guarantee Program in Support of the Liquidity of Micro, Small and Medium Enterprises (SMEs) Affected by the Emergency Situation and the COVID-19 Epidemic, implemented by the Bulgarian Development Bank AD (BDB). In order to meet the needs of the business, changes in the eligibility criteria under the Program have been proposed regarding the status of enterprises. In addition to SMEs, the scope of the Program will also include large enterprises - commercial companies within the meaning of the Commercial Law. This will be another, albeit indirect, measure to protect employment, including by supporting businesses that provide livelihoods in small towns and poorer geographical regions.
Given the extended scope of the Program, it is proposed to change its name accordingly, as follows - "Portfolio Guarantee Program to support the liquidity of companies affected by the emergency situation and the COVID-19 epidemic."
In the course of the implementation of the Program, larger enterprises, which are excluded from the scope of the anti-crisis measure, also stated their need for liquidity. This was also established by the survey conducted among the commercial banks - partners in the Program, which have submitted a proposal for inclusion in the scope of financing and enterprises above the categories for SMEs.
In order to maintain the priority "SME image" of the Program, each bank will have to meet a minimum quota for financing small and medium enterprises, which is not less than 60% of the loan portfolios formed under the Program.
The absolute maximum amount of the loan to one person and related parties is increased from BGN 300,000 to BGN 1,000,000 for SMEs and to BGN 2,000,000 for large enterprises - commercial companies within the meaning of the Commercial Law. The increase corresponds to the growing needs of commercial enterprises for liquidity.
It is proposed to increase the Limit of guarantee payments to 50%. Thus, BDB AD is already committed to make effective guarantee payments to commercial banks in the amount of up to 50% of the Guaranteed loan portfolios under the Program. As a result of a change in the Guarantee Payment Limit, the expected loan portfolio changes and amounts to BGN 1,250,000,000. The expected portfolio of guarantees, which becomes BGN 1,000,000,000, is also changing.
The term for inclusion of loans in the Guaranteed Portfolio is extended until 30.06.2021, as well as the term for application, which will be until 23.06.2021. The change corresponds to the continuing and even deteriorating as working and living conditions economic and social environment in the community, due to which the EC increased the term for support under the Temporary Framework of State Aid applicable to the Program.
How many millions for loans were distributed by the banks in our country under the guarantee programs
Loans for over BGN 178 million have been approved by commercial banks under the two guarantee programs managed by the Bulgarian Development Bank.
This is shown by the data of the financial institution as of October 26.
643 are the approved Bulgarian micro, small and medium enterprises under the guarantee program for business support affected by the COVID-19 pandemic. The total amount of loans confirmed as collateral is BGN 90.7 million.
Companies from the trade, tourism, transport and manufacturing sectors have shown the most serious interest in the program. Among the assisted are also companies in the field of agriculture, construction, services and advertising.
Under the business support program, BDB guarantees loans of up to BGN 300,000 to small and medium-sized enterprises that are suffering the negative consequences of the pandemic. The loans are granted by 8 partner banks, with reduced collateral requirements and the possibility of a grace period of up to 3 years.
The financial institutions granting the loans are Allianz Bank, DSK Bank, Bulgarian-American Credit Bank, Investbank, First Investment Bank, Postbank, Commercial Bank and UniCredit Bulbank.
Partner banks can include both new and existing loans in the program. The condition is that the companies experience difficulties in 2020 and have not been overdue for more than 90 days in the last year.
Under the other anti-crisis program - for interest-free lending to individuals, loans of up to BGN 4,500 are granted - at once or up to three tranches of BGN 1,500 each. Individuals who have been approved to receive interest-free loans up to BGN 4,500 are now over BGN 21,000. Their total value is just over BGN 88 million. Loan applications exceed 32,700, and 710 are currently being considered. of the loans is BGN 4,224.35.
Applicants may be employees who have been on forced unpaid leave or self-employed persons whose activities have been temporarily suspended due to the emergency. The maximum repayment period is 5 years, with a minimum of 6 months and a maximum of 24 months grace period. The loans are exempt from fees, commissions and penalties.
The partners in the program are 12 commercial banks, 10 of which continue to accept applications for interest-free loans. These are Allianz Bank Bulgaria, DSK Bank, Investbank, First Investment Bank, Commercial Bank, UniCredit Bulbank, United Bulgarian Bank, Eurobank Bulgaria, Raiffeisenbank and Central Cooperative Bank.
The deadline for applying for both BDB guarantee programs is until the end of 2020.
