bg flag go to the original language article
This article has been translated by Artificial Intelligence (AI). The news agency is not responsible for the content of the translated article. The original was published by BTA.

BDB and EC signed an agreement to issue a guarantee for the development of small and medium-sized businesses in Bulgaria

by AI | 17.Jul 2024 | Europe in brief AI

Bulgaria is expected to finalize its proposal for the REPowerEU chapter by mid-September

Photo by: Vladimir Shokov/BTA

BRUSSELS – The Bulgarian Development Bank (BDB) and the European Commission signed an agreement to issue a guarantee under the EU program Invest EU for EUR 40 million. Last year a guarantee of EUR 125 million was issued. The funds will be used for the development of small and medium-sized businesses in Bulgaria.

The Minister of Innovation and Growth of the interim government Rossen Karadimov stated on this occasion for BTA that BDB has been a key partner of the European Commission for several years under this EU program. According to him, this is a huge recognition for BDB because they are trusted to manage guarantee schemes for EUR 160 million. This makes BDB a leading partner of the EC, the minister explained. My presence, together with the Minister of Finance Lyudmila Petkova, was a sign of respect, Karadimov pointed out.

Under this guarantee scheme, BDB can provide through commercial banks a resource of 2.5 billion leva for small and medium-sized enterprises, Karadimov added. He explained that the European program is aimed at the development of a circular and sustainable economy. Companies will benefit from the credits of commercial banks, and BDB will guarantee the financial resources to the commercial banks, he added. According to him, the ceiling of the amounts that companies can apply for, as well as the types of companies that can receive European support, are yet to be specified.

It is expected that Bulgaria will finalize its proposal for the REPowerEU chapter under the national recovery and sustainability plan. For this purpose, a detailed schedule has been drawn up, agreed with the EC, said interim Deputy Prime Minister and Finance Minister Lyudmila Petkova, who represented Bulgaria at the meeting of the EU’s Economic and Financial Affairs Council.

The goal is for Bulgaria to finalize the draft of the REPowerEU chapter by mid-September and present it to the Commission for approval by the end of the year, the Ministry of Finance pointed out.

Ministers exchanged views on the EC and ECB reports on convergence, which assess the readiness of member states outside the Eurozone to adopt the single currency. The Eurogroup encouraged Bulgaria to continue the steps to meet the requirements for joining the Eurozone. Petkova assured the Council that the commitment to join the Eurozone as soon as possible remains a priority and the technical preparation continues at a good pace. (July 16)