site.btaEIB Lends Bulgaria EUR 500 Million in EU Grants Co-financing in Support of Priority Infrastructure Investments

106 ECONOMY-EIB-STRUCTURAL LOAN

EIB Lends Bulgaria EUR 500 Million in EU Grants
Co-financing in Support of Priority Infrastructure
Investments


Sofia, November 28 (BTA) - Finance Minister Vladislav Goranov
and European Investment Bank (EIB) Vice-President Laszlo
Baranyay signed Thursday a financial agreement between Bulgaria
and EIB under which the EIB lends Bulgaria EUR 500 million to
co-finance priority projects supported by EU funds during the
2014-2020 programming period. The EIB loan will cover the
national co-financing contributions under operational programmes
in the areas of transport (including urban transport) and
environment, the Finance Ministry said in a press release.

EIB Vice-President Baranyay, commented, quoted by EIB's press
office, that "The EIB loan will co-finance priority projects
with a total investment amount of EUR 4.3 billion in Bulgaria.
This will accelerate the absorption of EU grants for the benefit
of the national economy, strengthening its competitiveness and
fostering economic growth and employment. The EIB lending is
complementary to technical assistance provided by the EIB with a
view to receiving EU grants".

The EIB financing will be provided in the form of a Structural
Programme Loan. Together with larger projects the EIB loan can
also finance smaller schemes which, due to their limited size,
would not qualify for direct EIB financing. The EIB loan offers
long-term co-financing on highly attractive terms for projects
implemented under the EU programmes across Bulgaria,
pre-financing EU grants where needed.

Goranov voiced a hope that EIB's support to Bulgaria will
continue in the future but with a bigger role of the Bank in the
private sector. He said that Bulgaria's main challenge now is
how to increase investments so as to generate a potential for
growth next year. Goranov said also that the Bulgarian
Government relies on the EIB for technical expertise vis-a-vis
instruments for financial engineering which have reached an
advanced stage. Deputy Finance Minister Karina Karaivanov voiced
a hope that Bulgaria will received an advance payment under the
loan agreement by the end of the current year. LY /ZH/