04.08.2021

GREEN TECHNOLOGIES AND DIGITALISATION ARE PREFERRED SECTORS FOR INVESTEU FUNDING

After a market research among financial institutions, conducted by the Bulgarian Development Bank, it was found that the preferred sectors for financing under the InvestEU program are several: application of green technologies, environmental management of resources, water and waste, improvement of logistics and communication systems , introduction of new technologies, support for vulnerable groups such as startups and companies of women entrepreneurs.

The study takes into account market demand and helps identify potential financial intermediaries to partner with BDB. On June 30, 2021, the Bulgarian Development Bank officially declared to the EC a desire to attract additional funds for business recovery and development through the InvestEU program. The total resource that the bank can mobilize with the support of the EU and the participation of the financial sector is approximately BGN 1.7 billion.

The participants in the study stated that they were interested in a standard portfolio guarantee from BDB with opportunities for various risk coverage. According to them, the provision of such an instrument will enable them to finance riskier and more vulnerable final borrowers. Additional benefits for business will be lower interest rates and lower collateral requirements.

In terms of maximum funding, commercial banks report between € 7.5 million and € 15 million for the Sustainable Infrastructure component and up to € 7.5 million for the SME component. The acceptable terms of the loans are up to 180 and up to 120 months, respectively, and the period for generating a new portfolio - until 2027. The final confirmation of the inclusion of BDB in the InvestEU program is expected in October.

Аbout InvestEU

The InvestEU program will be implemented for the period 2021-2027 as the EU's main instrument for investing in economic recovery, environmental progress and employment in Europe. It is one of the tools to support growth after the Kovid crisis and to achieve the EU's goals of building a green, digital and sustainable European economy.