site.btaFLAG Fund Resumes Payments under Operational Programme Environment

FLAG Fund Resumes Payments
under Operational Programme
Environment


Sofia, August 28 (BTA) - The Fund for Local Authorities and
Governments (FLAG) decided to resume payments under current loan
 agreements for projects supported by Operational Programme
Environment, the Regional Development Ministry reported on
Thursday.

FLAG is a Bulgarian facility which provides low-interest loans
to support Bulgarian municipalities in implementing projects
co-financed by the EU. It suspended payments on April 28 in
order to preserve its credit portfolio after the European
Commission cancelled aid to Bulgaria under Operational Programme
 Environment in November 2013.

The first step now will be to pay 14 million leva to
beneficiaries. This is the amount of money which has been
requested in applications submitted and processed so far. FLAG
will continue to consider any further applications and provide
funding.

The new Regional Development Minister, Ekaterina Zaharieva,
vowed to unblock FLAG payments as soon as she took office on
August 6. Zaharieva's Ministry has also prepared a proposal to
increase FLAG's capital.

The resumption of FLAG payments is a step forward in restoring
public confidence in government institutions, minimizing the
risk of losing EU aid under Bulgaria's Operational Programmes,
salvaging the construction season and providing job security for
 hundreds of construction workers, Zaharieva said. SN/VE

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