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Another EUR 70 million and preferential loan conditions for SMEs by Postbank and EIF
Postbank intends to increase its support for entrepreneurs in 2017 and open five new specialized entrepreneur centres
Postbank and the European Investment Fund (EIF) will provide another EUR 70 million and preferential loan conditions to small and medium enterprises (SMEs) in Bulgaria. In 2016, Postbank proved itself as a loyal partner of the small and medium business, offering not only optimal conditions, but also innovative solutions to entrepreneurs from different regions in the country. Now the lender is expanding the options for SME financing at preferential terms after signing a guarantee agreement with the EIF for EUR 70 million under the Operational Programme "SME Initiative". Under the agreement, the EIF will provide a 60 percent guarantee for the bank’s loans.
“We understand entrepreneurs’ needs and this is why we are trying to constantly offer modern products, personalized approach and preferential loan conditions which would help us provide a stable base to companies and boost their development and growth. Companies come to us with increasingly better projects and are becoming more and more flexible and enterprising by relying on different and innovative solutions. This could be only good news for us. We believe the business sector deserves support and we will continue providing it“, Postbank comments.
Under the OP "SME Initiative", Postbank will offer its clients an even easier access to financing, prioritized service and excellent loan conditions. The goal is to grant the funds under the programme by end-2017. The preferential conditions are designed for companies which need working capital, intend to invest in strengthening and developing their main activity, to implement new projects or penetrate new economic sectors. The loan periods will be from two to 12 years, the maximum loan amount being EUR 5 million.
The SME Initiative OP for Bulgaria is a joint instrument of the European Commission, the EIF and the European Investment Bank, and aims at boosting SME lending, opening new jobs and increasing investment and growth. Bulgaria is the first country in the region and the third in Europe to benefit from the opportunities the instrument provides and help improving the competitiveness of Bulgarian SMEs.
20 specialized Postbank’s Small Business Banking centres and eight centres for medium corporate clients (with an up to BGN 30 million annual turnover) are now operating in the country, as another five are to be opened in 2017. “In 2016, we registered over 40 percent more loan applications submitted by Bulgarian entrepreneurs, mostly producers, as we expect this percentage to increase further. This could be only a positive sign, because SMEs, indeed, are the driver of Bulgarian economy", the financial institution adds.