Encouragement Bank with two new programs for Small and medium-sized enterprises
17.04.2007
Encouragement Bank releases two new credit programs for Small and medium-sized enterprises (SME’s ) – Eurostandard and Public-Private Partnership /PPP/. Encouragement Bank is the first financial institution that offers landing of such kind.
The Eurostandard program grants loans to SME’s that cover the EU standards and regulations. Loans are granted to SME’s that want to qualify to the requirements of the competitive EU market. The candidates should have the possibility for fast implementation of new technologies.
The PPP program aims at facilitating the cooperation between the public and private sector, as well as, increasing the effectiveness of the public expenses. The requirement is that SME’s public-private projects should be realized in municipalities with population over 10 000.
Encouragement Bank is a leader in the long-term lending to SME’s in Bulgaria. The financial institution grants investment loans up to BGN 2 mio with a 10-year pay off term and a grace period of up to 3 years.
The loans over 5 years represent 57% of the loan portfolio of the bank, according to data as at September 30, 2005. The loans from 1 to 5 years are 37% from the loan portfolio, and the loans up to 1 year – 6%.
Due to the guarantee line provided by the European Investment Fund, Encouragement Bank grants the opportunity to the SME’s to use lower security up to 85%.
The Bank has been chosen recently to be a consultant for the preparation of business plans and to provide financial consultations to SME’s which apply for a free help for the project “Support for increasing the competitiveness of the Bulgarian enterprises” of the PHARE program.
