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Small and medium-sized enterprises to be granted ?150 mln

Thursday, May 31, 2012

A grant of ?150 mln will be secured for co-financing of new bank loans from the JEREMIE Holding Fund via providing interest-free loans to small and medium-sized enterprises. This was decided at meeting of the GERB government, which approved the amendment and supplement to the Framework Agreement and the Financial Agreement contracted between Bulgaria and the European Investment Fund for the implementation of the JEREMIE initiative in Bulgaria. The amendments reflect the reforms in the Operational Programme Competitiveness, which will introduce a new financial instrument aiding businesses via providing funding through risk sharing. Thus, approximately half of the approved loans will be funded. As a result, reductions are expected in terms of the total interest charged on the corporate loan in order to encourage companies to implement their investment intentions. So far, one of the main reasons for the termination of contracts singed under OP Competitiveness has been the difficult access to bridge financing. The capital increase of the Holding Fund and the introduction of the new financial facility will allow for this weakness to be eliminated. Via the JEREMIE initiative, the Bulgarian GERB government will avail itself of the opportunity of each EU member-state to invest a part of the structural funds in order to finance small and medium-sized businesses through low-interest loans and co-financing of bank loans with the aid of the Holding Fund.

Source: klassa.bg