Financial and business news from Bulgaria

The Bulgarian Development Bank approved loans for over BGN 268 million.

under two government anti-crisis programs
The Bulgarian Development Bank (BDB) has approved loans for over BGN 268m under the two government anti-crisis programmes it manages, the bank said.

With the funds, 26,221 individuals are supported and given the opportunity to finance more than 1200 companies.

Value of validated loans for small and medium-sized companies is just over BGN 158 million. The most serious is the interest from trade and tourism, production and transport sectors. Among those supported are companies in the field of construction, agriculture, services and advertising.

BDB already guarantees lending up to one million leva for small and medium-sized enterprises and up to two million leva - for large companies that suffer negative consequences of the pandemic. The loans are granted by nine banks, subject to reduced collateral requirements, a reduction in the interest rate and the possibility of a grace period of up to three years. The condition is that firms will experience difficulties in 2020 and not be in arrears of more than 90 days for the last year.

More than 40,000 individuals have applied for interest-free loans according to commercial bank data, with just over 1240 currently being considered. The total value of approved loans is over BGN 110 million and the average amount is 4229 BGN. After changes made to the program for interest-free lending to individuals, BDB already guarantees loans up to 6900 BGN instead of up to BGN 4500, as planned so far.

The deadline for applying for both programmes has been extended until June 2021.