Four commercial banks, selected on the basis of competitive procedure, will provide EUR 25 million for financing of small and medium sized enterprises. The funds are provided under a credit line signed between the Bulgarian Development Bank (BDB) and Kreditanstalt fuer Wiederaufbau (KfW). This is the second loan agreement between the Bank and the German financial institution.
The funds will be used for the financing of long-term investment projects of companies. The maximum amount of funding under this credit line will be EUR 3 million per company with a maturity of up to 10 years. The loans will cover 100% of the investment costs, as well as the necessary working capital of not more than 30% of the investment.
The Bulgarian Development Bank is the only state-owned financial institution in the country. During the last month BDB has attracted more than EUR 100 million from international financial institutions for the lending to Bulgarian bu
