site.bta Bulgarian Development Bank Contracts EUR 80 Mln from China Development Bank for Bulgarian SMEs

Bulgarian Development Bank Contracts EUR 80 Mln from China Development Bank for Bulgarian SMEs

Sofia, May 12 (BTA) - The Bulgarian Development Bank (BDB) contracted 80 million euro from China Development Bank (CDB) for financing Bulgarian companies, the PR agency involved with the project said Friday.

The loan agreement was signed by BDB Executive Director Angel Gekov and CDB Chongqing Branch Vice President Peng Jianxun.

This is the second loan extended to the Bulgarian financial institution by CDB. Cooperation between the two banks dates back to 2009, when BDB received a 5 million euro loan, which was used mainly to finance SME investment projects.

The funds will be used for investment and working capital loans, as well as for credit lines of Bulgarian companies. BDB has the possibility to use the financial resources for assisting strategic projects within the One Belt, One Road initiative, which started in 2013. Over 100 countries and international organizations partake in the initiative, whose main goal is the construction of infrastructural and energy links between Asia and Europe, with a focus on East Europe. Investments in the amount of USD 8 trillion are expected to be accumulated for the projects' implementation.