10.01.2022

THE EIF AND RAIFFEISENBANK HAVE AGREED ON ANOTHER 150M EUROS TO SUPPORT BULGARIAN BUSINESS

The European Investment Fund (EIF) and Raiffeisenbank (Bulgaria) signed new guarantee agreements for another 150m euros to continue supporting Bulgarian business during the COVID-19 pandemic. The application period has been extended by another year until 31.12.2022, the bank announced.

The agreements enable Raiffeisenbank (Bulgaria) to continue supporting Bulgarian small, medium and intermediate enterprises. The total amount of the guarantee, supported by the European Investment Fund, reaches 300m euros. The funding provided is provided by the EGF Guarantee Facility, implemented by the European Investment Fund (EIF) with the financial support of the Member States of the European Union, which contribute to the Pan-European Guarantee Fund (EGF).

Under the agreements, the companies will have access to financing with investment loans with a repayment period of up to 10 years, working capital loans of up to 5 years and revolving loans/overdrafts of up to 4-5 years, depending on the state aid regime, the financial institution explained.

So far, as a result of cooperation between Raiffeisenbank and the EIF, there are agreements worth more than 1.1 billion euros, including more than 560 million euros available to Bulgarian small and medium-sized enterprises to overcome the negative economic effects of the covid pandemic.

"Businesses across Europe continue to feel the economic consequences of the KOVID-19 pandemic. The strengthened partnership between the EIF and Raiffeisenbank under the European Guarantee Fund will provide much-needed funding to meet the needs of Bulgarian companies," said Roger Havenitt, Deputy Chief Executive Officer of the EIF.

"Support for small and medium-sized enterprises during the more affordable financing pandemic is the key to Bulgaria's economic recovery and prosperity. Under the European Guarantee Fund, the EIB Group has so far approved 12 operations expected to mobilize more than 2.1 billion Euro investments in the Bulgarian economy", said the Vice President of the European Investment Bank Lilyana Pavlova.

According to Dobromir Dobrev, Deputy Chairman of the Board of Raiffeisenbank (Bulgaria) in Corporate Banking and Capital Markets, 7,600 projects of Bulgarian small and medium-sized companies have been supported, thanks to the partnership with the EIF, with over 680 million euros.