Bulgarian Development Bank (BDB) received a credit line in the amount of 15 million euro, without state guarantee from Council of Europe Development Bank (CEB). The credit line loan agreement was signed by the executive directors of BDB Dimitar Dimitrov and Sasho Tchakalski and the Vice-Governor of CEB Imre Tarafas.
The funds will be used for the financing of investment projects of micro, small and medium-sized enterprises from the real sector with the purpose of creating new and preserving the existing jobs. The financial resource can be used for the financing of craftsmen and family entrepreneurs. BDB will provide loans with a maximum period of up to 10 years and a grace period of up to 2 years.
This is the second credit line granted to Bulgarian Development Bank. The previous credit line, also in the amount of 15 million euro, was granted to BDB in 2003. The 2003 credit line has been used for the financing of investment projects of Bulgarian SMEs and 2545 new jobs were created.
So far Bulgarian Development Bank has negotiated with foreign financial institutions a total amount of 103 million euro under the form of credit lines for financing Bulgarian small and medium-sized enterprises and 30 million euro under the form of a guarantee line. Besides the agreement with CEB, loan agreements were signed with China Development Bank, Black Sea Trade And Development Bank and the European Investment Fund. By the end of the year loan agreements are expected to be signed with European Investment Bank and the Japan Bank for International Cooperation in the amount of 45 million euro for the financing of SMEs. The entire resource is without a state guarantee.
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Council of Europe Development Bank represents a major instrument of the policy of solidarity in Europe – the bank uses its resources for the financing of social projects in order to help its 40 member states achieve sustainable and equitable growth. At the end of 2008 CEB’s total assets are in the amount of 21.4 billion euro, and its net profit reached 95.8 million euro. The Council of Europe Development Bank enjoys the highest rating (AAA/Aaa).
