site.btaEuropean Association Ranks Bulgaria's National Guarantee Fund Second in Guaranteed-Portfolio Growth

The National Guarantee Fund (NGF), a member of the Bulgarian Development Bank (BDB) Group, is ranked second for guaranteed-portfolio growth in the annual report of the Brussels-based European Association of Guarantee Institutions (AECM), BDB reported on Wednesday.

NGF's guaranteed portfolio grew by 98.8% in 2023, compared with an average rate of just 4% among 45 institutions in 31 AECM member countries. In the year under review, NGF supported about 2,000 small businesses in obtaining a total of BGN 471 million in loans. The support expanded over the course of 2023 as the second half of the year saw over 1,500 businesses backed in obtaining BGN 320 million in loans.

Overall, AECM reports a shift to investment capital loans and a contraction of operating capital loans. This strategic change in favour of long-term investments shows that Europe's small and medium-sized companies are preparing for future growth and stability. NGF is a leader in providing portfolio guarantees at its own risk to commercial banks in support of small businesses in Bulgaria, BDB said.

Since its establishment in 2008, NGF has supported more than 13,000 businesses by providing BGN 1.4 billion worth of guarantees. As a result, companies have received over BGN 3.5 billion in resources. Guarantees complement the security for repayment and make for more relaxed terms of lending. One in five small or medium-sized enterprises in Bulgaria uses NGF support to obtain funding, BDB estimated.

NGF was established 16 years ago as a BDB subsidiary. It superseded the Micro-Lending Guarantee Fund, which had been established by the Ministry of Labour and Social Policy as a specific instrument to promote employment and make funding more accessible to micro-enterprises and socially disadvantaged people.