United Bulgarian Bank is first among financial institutions that are going to grant business loans with guarantees from the European Investment Fund (EIF) under Operational Programme Small and Medium Enterprises Initiative. Through the agreement, signed between UBB and EIF, the Fund will guarantee the loans, granted by the Bank, in the amount of nearly BGN 130 million.

As early as December UBB is to provide under the initiative credit products for working capital and investment needs to micro, small and medium-sized enterprises in Bulgaria. Bulgarian companies will be able to obtain financing at even lower interest rates, fees and collateral levels, by means of business loans under European conditions for promoting dynamic and sustainable development and growth.

“This agreement is a logical continuation of our efforts in support of the small and medium-sized enterprises in Bulgaria. The experience we have gained so far gives us grounds to believe that such programmes will further evolve into desired and successful prerequisites for the development of this important segment of the Bulgarian economy, that is, the foundation of every economy in the world”, UBB’s Chief Executive Officer, Mr. Stilian Vatev said.

The new Small and Medium Enterprises Initiative is a joint financial instrument of the European Commission, the EIB Group and the member states, which aim is to boost the funding to Small and Medium Enterprises through partial risk coverage on commercial banks’ loan portfolios. This agreement targets significant improvement of access to funds for more than 4 000 small and medium enterprises, including micro companies and start-ups, through ensuring funding by participating banks at lower interest rates.

Alongside with the resources by the European structural and investment funds under Operational Programme Small and Medium Enterprises Initiative, there is also attracted co-funding under the EU Horizon 2020 Programme and the EIB Group.