site.btaBulgaria Gets EUR 250 Mln Loan from EIB to Co-finance EU-Backed Projects

The European Investment Bank (EIB) announced Friday that it is lending Bulgaria EUR 250 million to co-finance EU-backed projects and accelerate development in areas ranging from energy efficiency and water to transport and research. The loan is for projects that will strengthen the Bulgarian economy, bolster competitiveness and enhance the country’s quality of life, the Bank said.

More specifically, the EIB funding will help Bulgaria co-finance initiatives that receive grants through the European Union budget to increase energy efficiency of buildings and industries, upgrade wastewater treatment, bolster business research, improve railways and protect soil, among other goals. Special focus will be put on projects that boost innovation and digitalization, contribute to Bulgaria’s green transition and improve its transport connectivity.

The tranche can also support relatively small projects that would otherwise be ineligible for direct EIB financing.

EIB Vice-President Kyriacos Kakouris is quoted as saying that the loan will accelerate the absorption of EU grants for the benefit of the national economy. “This in turn will strengthen the economic, social and territorial cohesion and ultimately improve the business environment, the quality of public services and the living standards in the country.”

The loan is the first tranche of EUR 1 billion EIB lending facility available to Bulgaria in the EU’s 2021-2027 budgetary period. 

The EIB recalls that it has with Bulgaria a financial-cooperation track record that predates the current EUR 1 billion facility. The partnership includes similar lending agreements of EUR 500 million in 2014 and EUR 700 million in 2007. Both have co-financed EU-backed projects in Bulgaria including extending and upgrading railways and highways, developing and rehabilitating water and wastewater treatment facilities, as well as improving Sofia’s public transport.