site.btaParliament Ratifies Agreement on Loan Granted to Bulgarian Development Bank for SMEs
The Parliament voted Thursday a bill for ratification of the guarantee agreement between the European Investment Bank (EIB) as beneficiary and Bulgaria as guarantor in connection with the financing agreement between the EIB and the Bulgarian Development Bank (BDB) for a loan granted to the BDB for small and medium-sized enterprises and enterprises with medium market capitalization, submitted by the Council of Ministers on July 24.
The item was included in the agenda earlier on the day at the proposal of National Assembly Chair Rossen Zhelyazkov.
The Economic Policy and Innovation Committee’s report states that one of the objectives of the Bank is to attract and manage medium and long-term domestic and foreign resources needed to realise the country's economic development. These will be targeted to support specific sectors, beneficiaries and investments - with priority for the national economy. In pursuance of this objective, a financing agreement was signed on July 11 between the EIB and the BDB for a loan of EUR 175 million.
The loan was aimed at financing projects of small and medium-sized enterprises and enterprises with a medium market capitalisation, including projects to protect the environment and combat climate change.
The EIB’s loan was conditional upon the provision of a State guarantee.
By the guarantee agreement, Bulgaria irrevocably and unconditionally guarantees to the EIB the timely payment of all amounts due from the BDB under the financing agreement between the two banks. Payment obligations under the guarantee agreement shall arise in the event of payment defaults by the borrower. The signing and enactment of the guarantee agreement is a precondition for the disbursement of the loan, the report reads.
/RY/
Additional
news.modal.image.header
news.modal.image.text
news.modal.download.header
news.modal.download.text
news.modal.header
news.modal.text