site.btaEuropean Investment Fund and Raiffeisenbank Bulgaria Sign Agreement on EUR 35 Mln of Funding for Bulgarian Business

European Investment Fund and Raiffeisenbank Bulgaria Sign Agreement on EUR 35 Mln of Funding for Bulgarian Business

Brussels, February 2 (BTA) - The European Investment Fund (EIF) and Raiffeisenbank (Bulgaria) EAD, a subsidiary of Raiffeisen Bank International AG, have signed a guarantee agreement aimed at increasing the funding for innovative small- and medium-sized enterprises (SMEs) in Bulgaria, the EIF said Tuesday. The agreement will allow Raiffeisenbank to provide funding to the amount of 35 million euro to innovative companies in Bulgaria over the next two years.

The transaction is carried out with the support of the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe.

"The loans will be enabled by an EIF guarantee under the 'EU InnovFin Finance for Innovators' initiative with financial backing from the European Commission's Horizon 2020 programme. The agreement will make it possible for Raiffeisenbank (Bulgaria) to offer innovative companies additional financing at favourable conditions," the EIF's press release reads.

Commenting on the agreement, Kristalina Georgieva, European Commission Vice-President for Budget and Human Resources, said, as quoted by the EIF, that this is the second time in less than half a year that Bulgaria taps into the guarantee provided under the Investment Plan. "This agreement is again for what matters the most - support for SMEs which create most of the new jobs in Europe," she noted.

EIF Chief Executive Pier Luigi Gilibert commented: "The signature with Raiffeisenbank (Bulgaria) demonstrates our commitment to rolling out the EFSI programme rapidly. By boosting finance for innovative companies through the InnovFin SME Guarantee product, we can provide effective and timely support to Bulgarian businesses to help them develop and strengthen new products and services."

Raiffeisenbank (Bulgaria) CEO Oliver Rogl said the bank is very happy to participate in this programme, which is another sign of its good cooperation with the European financial institutions. Thanks to the programme, Raiffeisenbank will further expand its support to SMEs and prove again that it is a trustful partner of the Bulgarian business, he added.

"This is the first InnovFin transaction in Bulgaria signed thanks to EFSI support. The deal reflects the EIB Group's commitment to respond swiftly to calls from Member States, the European Commission and the European Parliament for a rapid launch of concrete initiatives under EFSI, accelerating lending and guaranteeing transactions capable of boosting jobs and growth in the EU," the press release reads.