European Commissioner for Regional Policy, Corina Crețu © Partidul Social Democrat
European Commissioner for Regional Policy, Corina Crețu © Partidul Social Democrat

EIF signs SME support guarantee

The European Investment Fund (EIF) has signed guarantee agreements with five Bulgarian banks to generate a total of €385m of finance to small and medium-sized enterprises (SMEs) in the country.

The agreements signed with United Bulgarian Bank, Raiffeisenbank Bulgaria, UniCredit Bulbank, Procredit Bank and CIBank, aim to improve access to finance for over 4,000 Bulgarian SMEs, including micro companies and start-ups.

The five guarantee transactions are covering two thirds of the target €600m of total SME funding available under the initiative.

European Commissioner for Regional Policy, Corina Crețu said “The signature of these agreements shows that the SME initiative in Bulgaria is delivering on its promises – to give fresh loans to small businesses and to support EU-wide goals of growth and job creation. I wish to see many other member states follow the example of Bulgaria.”

The SME Initiative is a joint programme blending support from the commission, the European Investment Bank (EIB) Group and EU member states. Alongside European structural and investment funds contributed by member states, the SME Initiative is co-funded through Horizon 2020.

EIB vice-president, Andrew McDowell, said: “All of the five banks are important SME lenders in Bulgaria and via the SME Initiative will be vital partners in providing support for entrepreneurs wishing to grow and develop their business.”