29.09.2021

UBB GRANTS EUR 74 MILLION IN PREFERENTIAL LOANS TO SMALL AND MEDIUM-SIZED BUSINESSES

The successful cooperation between United Bulgarian Bank (UBB) and the European Investment Fund (EIF) continues with the signing of a new agreement under the Pan-European Guarantee Fund - EGF program. This will allow UBB to create a portfolio of EUR 74 million, under preferential terms for SMEs, in order to overcome the consequences of COVID-19. The program also allows full refinancing of liabilities, which is a key feature of the new guarantee instrument.

The EGF is part of the European Union's recovery package, which aims to provide a total of € 540 billion in support for the most severely affected parts of the EU economy. The scheme is part of the new generation of financial instruments, which are fully in line with the "green policy" of the European Union and correspond to the plans and goals of UBB to promote sustainable business development. The program is implemented by the EIF with financial support provided through the contribution of the participating Member States to the EGF.

The EGF guarantee instrument allows for coverage of 70% of the amount of each investment and working capital, free of charge for final recipients. The maximum amount of financing at the level of the borrower and related parties is approximately BGN 2.2 million, and limited financing of companies in the Agriculture sector is allowed. The maximum term for investment loans is up to 120 months, and for working capital - up to 36 months.

"Small and medium-sized enterprises are key players in every country, regardless of size and income level. Their role in supporting sustainable development is paramount. As small and medium-sized enterprises are valuable players in the economy, and COVID-19 continues to fill a large part of our lives, I am sure that the program will provide them with another useful tool for their stable and sustainable growth," said Peter Ruben, Country Manager of KBC Group in Bulgaria and CEO of UBB.

This is the eighth guarantee agreement signed between the EIF and UBB. The total volume of the Bank's loans included in EIF instruments exceeds BGN 1 billion. The successful partnership allows access to preferential financing conditions and supports the development of Bulgarian business.