05.08.2022 The National Guarantee Fund has signed an agreement with the UBB to guarantee loans for small and medium-sized companies

The National Guarantee Fund (NGF), part of the Bulgarian Development Bank Group, has signed an agreement with the United Bulgarian Bank, part of the Belgian financial group KBC, to issue guarantees for loans granted to finance micro-, small and medium-sized companies. The program is aimed at supporting Bulgarian entrepreneurship and will offer guarantees at a total amount of BGN 192 million.

The agreement was signed by Todor Todorov, Executive Director of the NGF, Deyan Kalapchiev, member of the Board of Directors of the NGF, Desislava Simeonova, Executive Director for “Small and Medium-sized Companies” with the UBB, and Tatyana Ivanova, Executive Director for “Marketing and Distribution - Retail Banking” with the UBB.

The main advantages of the NGF guarantee scheme are preferential prices and collateral discounts compared to standard commercial banks, as well as the possibility to guarantee loans for financing European projects.

The partners of the National Guarantee Fund under this program are 10 commercial banks, with the total amount of the declared guarantee limit being BGN 674 million. This allows the granting of potentially guaranteed loans for about BGN 1.4 billion.

About 5,000 small and medium-sized companies are expected to receive support under the program.

The guarantee scheme is intended for existing and start-up micro-, small and medium-sized companies, with the guarantee covering up to 50% of the amount of loans granted.

Investment loans, working capital loans and bank guarantees in BGN and EUR are allowed.

The program offers relaxed conditions for applying for grant projects and renewable energy sources, as well as for companies from the NKID-79 sector – tourist, agency and operator activities, as well as other travel- and booking-related activities.

An extended term for the inclusion of new loans from 1.5 years to 3 years has also been envisaged.

The new guarantee scheme of the National Guarantee Fund is another step in support of the company’s mission to stimulate the sustainable development of small and medium-sized companies in the country by providing equal access to financial resources. The scheme builds on the successful guarantee products implemented over the past 10 years and reinforces the company’s leading role as a guarantor for small and medium-sized businesses.

 

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