05.08.2021

BUSINESSES WILL RECEIVE LOANS MORE EASILY

Companies will receive easier financing once the Council of Ministers adopts the Portfolio Guarantee Program to support the liquidity of companies affected by the emergency and the COVID-19 epidemic.

The "recovery program" will provide significant liquidity support to businesses in the country, concentrated in a relatively short period of time.

The guarantee scheme will ensure the provision of a large number of enterprises on favorable terms, on favorable terms, which will largely cover the increased counterparty risk associated with the consequences of COVID-19, the Council of Ministers announced.

The effect of the guarantee is focused on reliefs in the collateral requirements and the shortest possible terms for approval and disbursement of loans.

Commercial banks will be required to transfer the full economic benefits of the guarantee to the final borrowers, by providing unsecured loans, with the exception of personal guarantees, which must be provided by the beneficial owners.

The changes in the Program envisage the loans to be provided with shorter processing terms and with optimized time for approval or refusal.

The decision gives consent to the Bulgarian Development Bank EAD to reallocate part of the funds within the approved budget under the Program for implementation of other measures for overcoming the consequences of COVID-19, assigned for implementation by the Council of Ministers of Bulgarian Development Bank EAD.

The draft decision will contribute to the effective implementation of the programs assigned to BDB AD to overcome the negative consequences of the COVID-19 pandemic.