United Bulgarian Bank issued the following announcement.
United Bulgarian Bank (UBB) and Fund Manager of Financial Instruments in Bulgaria (FMFIB) signed an agreement for a portfolio guarantee of BGN 128 million. The new instrument “Portfolio guarantee with a ceiling of losses to overcome the consequences of COVID-19” is funded by the Operational Program “Innovation and Competitiveness” 2014-2020. Through it the bank will provide preferential financing to small and medium enterprises and corporate clients experiencing difficulties in connection with the crisis caused by the COVID-19 pandemic.
The program provides up to 80% free guarantee, and customers will receive more favorable conditions than the standard ones. Through the new guarantee product, UBB and FMFIB will support small and medium-sized enterprises in the current difficult situation, facilitating business access to loans for continued operations, including to meet liquidity needs and to overcome financial difficulties related to the pandemic.
The offering of loans under the FMFIB Program will start in the first months of next year. The new instrument will allow UBB to offer financing at preferential price terms and relaxed collateral requirements.
Companies can take advantage of the product in two directions: investment loans with up to 24 months grace period for repayment of debt and working capital loans with the possibility of up to 12 months grace period on principal. The maximum amount of the loan guarantee is BGN 2.93 million with a guarantee duration of 5 years and BGN 1.46 million with a guarantee duration of 10 years. UBB will provide customers with the opportunity to use an interest rate subsidy for the first year, subject to the eligibility conditions and the rules for receiving state aid des minimies.
Original source can be found here.
