25.11.2020
People on unpaid leave can still take out an interest-free loan
The Bulgarian Development Bank is working on an option to re-apply for the anti-crisis guarantee program for individuals, for which it received a mandate from the government, as well as to extend the application period until June 2021.
The financial institution is awaiting final approval by the EC on the new terms of the business program in order to be able to provide funding in a larger amount and a longer application period. Upon approval, individuals and companies who will experience difficulty in re-lockdown will be able to benefit from both programs. This was stated by the Executive Director of the Bulgarian Development Bank Mr. Zhivko Todorov during the Third Banking and Finance Forum "The Future of Money".
The interest-free loan program of the Bulgarian Development Bank aims to support employees on unpaid leave and self-insured persons who have ceased operations as a result of the COVID-19 pandemic. The loans are up to BGN 4,500, granted by commercial banks at once or in three tranches of BGN 1,500 each.
"Money has a future, and those we invest in the economy now will guarantee it. The Bulgarian Development Bank strives to support the entire Bulgarian business, from all possible sectors of the economy. That is why we submitted for approval to the EC new, improved parameters of the program, through which access to credit will be possible for an even wider range of companies.
We have set an extension of the application period until the end of June 2021 and have increased the maximum amount of loans to BGN 1 million for small and medium enterprises. Large companies will now be able to apply for the program, and the loan they will be able to use is up to BGN 2 million. Upon approval of the parameters by the EC, we will give the opportunity to companies that have already received funds to re-apply until they reach of the new maximum size", added Mr. Zhivko Todorov.
The main goal of the Bulgarian Development Bank at the moment is to give a breath of fresh air not only to the Bulgarian business, but also to the individuals experiencing financial difficulties during the pandemic of COVID-19. Experts of the financial institution are working on an option in which they can also re-apply for an interest-free loan.
"Our programs are open to absolutely all industries, we are no exception. The Bulgarian Development Bank does not lend, it grants guarantees, gives portfolio guarantees to the commercial partner banks, as we cannot compete with them" said the executive director of the bank. According to him, the Bulgarian Development Bank will continue to play the role of a partner of commercial banks in the country, and is ready to manage more programs if the government assigns it a mandate.
According to the reports of commercial banks, as of November 24, nearly 23,000 people have been approved for interest-free loans, and the total value of loans is almost BGN 95 million. Under the guarantee program in support of business, the bank has confirmed 1004 loan companies in amounting to over BGN 129 million. The SME program is ready to take loans of up to BGN 1.2 billion.
The Bulgarian Development Bank also participates in the beamUp lab program, established on the initiative of the Bulgarian Stock Exchange. For a year, the companies involved in it will get acquainted with the various financing opportunities in order to be able to successfully implement their new ideas.
