13.01.2021
Who can get interest-free loans because of the crisis
The Bulgarian Development Bank (BDB) has approved loans for over BGN 268 million under the two government anti-crisis programs it manages. The funds supported 26,221 individuals and provided an opportunity to finance more than 1,200 companies.
The value of the confirmed loans for small and medium-sized companies is a little over BGN 158 million. The most serious interest is from the sectors of trade and tourism, production and transport. Among the supported are also companies in the field of construction, agriculture, services and advertising.
After the implementation of the new parameters, which were approved by the EC at the end of November last year, in the work of commercial banks BDB now guarantees loans of up to BGN 1 million for small and medium enterprises and up to BGN 2 million for large companies which suffer negative consequences from the pandemic. Loans are granted by 9 partner banks with reduced collateral requirements, reduced interest rates and the possibility of a grace period of up to 3 years.
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.
The financial institutions granting the loans are Allianz Bank, DSK Bank, Bulgarian-American Credit Bank, Investbank, First Investment Bank, Postbank, D Commercial Bank, UniCredit Bulbank and UBB.
More than 40,000 individuals have applied for interest-free loans, according to commercial banks, and just over 1,240 are currently being considered. The total value of the approved loans is over BGN 110 million, and the average amount is BGN 4,229.
Following changes in the program for interest-free lending to individuals, BDB now guarantees loans up to BGN 6,900, instead of up to BGN 4,500, as previously planned. The adopted changes provide an opportunity for lending to citizens who have been on unpaid leave due to the pandemic, and in the current period of restrictive anti-epidemic measures imposed are unemployed.
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 situation. 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, D Commercial Bank, UniCredit Bulbank, United Bulgarian Bank, Eurobank Bulgaria, Raiffeisenbank and Central Cooperative Bank. With them, BDB concluded guarantee agreements for just under BGN 160 million.
The application period for both programs has been extended until June 2021.
