The GP is a tool which offers financing for SMEs on advantageous terms such as attractive interest rates, a grace period suited to the needs of business.
CIBANK is a dynamically developing commercial bank with 20 years of experience in providing a full range of banking and financial services and products for individuals, corporate clients and SMEs. The synergies between CIBANK and the other entity of Group in Bulgaria, DZI, make possible the use of innovative approaches in the provision of bank assurance products and services which are new for the Bulgarian market.
CIBANK is the first bank in Bulgaria, which in 2015 officially signed an Agreement for the issuance of a guarantee to cover losses on debts with the European Investment Fund under the COSME Programme. The agreement was concluded with the support of the European Fund for Strategic Investments (EFSI) through which the Investment Plan for Europe is implemented by EC and the EIB Group. The programme provides guarantee schemes in the form of partial collateral for new loans and bank guarantees; thus, it assists enterprises in accessing financing. Its goal is to access finance in all phases of the SMEs lifecycle – creation, expansion, or business transfer. The purpose of loans is:
• Financing of investment projects, such as the purchase of FTAs;
• Financing of working capital needs of enterprises;
• Bank guarantees for tenders, performance, payment, etc.;
The borrowers can be micro, small and medium-sized enterprises, registered in the Republic of Bulgaria and meeting the criteria of the effective Law on SMEs.
The main partner is EFSI.
The Bank’s portfolio for loans is 100 mln.euro per year.
Evidence of success
The goal of the GP is to access finance in all phases of the SMEs lifecycle – creation, expansion, or business transfer. Thanks to Bank support, businesses have easier access to guarantees, loans and equity capital and it helps businesses to access markets in the EU and beyond.
The number of signed loan contracts for the period 2015 - 2016 is 200 for the amount of 36 mln. euro.
Potential for learning or transfer
The GP is a specific tool which offers financing for SMEs on advantageous terms such as attractive interest rates, a grace period suited to the needs of businesses. By sharing the risk, the guarantees will allow the Bank to expand the range of SMEs and types of financial transactions they can support. These guarantees will help many SMEs to go or enlarge their presence on international markets who might otherwise not be able to obtain funding due to their perceived higher risk or a lack of sufficient collateral.
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