EIF Chief Executive, Mr Richard Pelly and Vice Chairman of the Board of Directors of JOBS MFI and Executive Director of BDB, Mr. Iliya Karanikolov, together with the Chairman of the Board of Directors of National Guarantee Fund (NGF), and Member of the Management Board of Bulgarian Development Bank (BDB) Mr. Andrei Genev, today signed two agreements in Sofia to support micro, small and medium-sized enterprises in Bulgaria.

Both Jobs MFI and NGF are wholly owned subsidiaries of the Bulgarian Development Bank (BDB). The EUR 6m senior loan for JOBS MFI and EUR 30m guarantee agreement for guarantees issued by National Guarantee Fund (NGF) to businesses will allow Bulgarian entrepreneurs to access finance and equipment to start up, develop and grow their businesses.

Commenting on the deals, Richard Pelly said: “After signing five agreements under the JEREMIE programme in July, we are delighted to be signing two further deals to benefit SMEs in Bulgaria.

The two new operations are complementing the existing finance instruments and will help even more SMEs to access finance.”

The agreements were signed under the EU Competitiveness and Innovation Programme (CIP) and the European Progress Microfinance Facility (Progress Microfinance), funded by the European Commission and the European Investment Bank (EIB) and managed by the EIF.

The Chief Executive of Bulgarian Development Bank, Mr. Assen Yagodin said: “The agreements are very important milestones in the development of BDB Group’s subsidiaries. The guarantee will be leveraged by NGF translating to a total of over EUR 120m of SME loans. The EIF counter guarantee will allow NGF to guarantee additional SME lending for up to 15 years.

The support for JOBS Micro Financing Institution EAD to fund Bulgarian micro-enterprises, including start-ups allows us to contribute additional funds to this facility, bringing the total micro-credit and micro-leasing support to EUR 9m”.

About EIF

The EIF central mission is to support Europe’s SMEs by helping them to access finance. EIF designs and develops venture capital and guarantees instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

About CIP

The Competitiveness and Innovation Framework Programme (CIP), which spans from 2007 to 2013, has been put in place to boost European productivity, innovation capacity and sustainable growth, whilst simultaneously addressing complementary environmental concerns.

Within the framework of the CIP, the European Investment Fund (EIF) has been allocated EUR 1.1bn to be split between venture capital – with the High Growth and Innovative SME Facility (GIF) - and guarantees – with the SME Guarantee Facility (SMEG).

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About Progress Microfinance

The European Progress Microfinance Facility (Progress Microfinance) provides guarantees and funded instruments to intermediaries. The initiative is established with EUR 203m of funding from the European Commission and the EIB. EIF acts as management company of the EPMF – a sub-fund of the EU Microfinance Platform FCP-FIS – the platform through which Progress Microfinance is implemented.

Progress Microfinance aims to increase access to finance for micro-entrepreneurs, including the self-employed. It has a particular focus on, but is not restricted to, groups with limited access to the conventional credit market. Examples include female entrepreneurs, young entrepreneurs, entrepreneurs belonging to a minority group, entrepreneurs with a disability, sole traders etc. Loans less than EUR 25,000 are made available through selected intermediaries selected by the EIF.

About National Guarantee Fund

National Guarantee Fund EAD is a 100% subsidiary of Bulgarian Development Bank AD established in August 2008. NGF provides guarantees to the commercial banks for their loans to micro, small and medium sized enterprises’. The purpose of NGF is to facilitate access and improve terms of loans for micro, small and medium sized enterprises registered and operating within the Republic of Bulgaria.

The main products, offered by NGF are SME investment loan guarantees and working capital loan guarantees for start-ups and established micro and SMEs, loan guarantees for joint financing of projects approved for financing by the European Union Structural Funds, working capital guarantees for export of goods manufactured in Bulgaria by micro and SMEs and counter guarantees on bank guarantees.

About JOBS MFI

JOBS Micro Financing Institution EAD is a joint stock company with a sole shareholder Bulgarian Development Bank AD. The main objective of JOBS Micro Financing Institution EAD is to extend financing to micro enterprises, including start-ups. The company provides micro-credit and micro-leasing facilities through its nationwide business network of intermediaries.

The company reduces micro enterprises “exclusion” from the financial services market, enables them to develop their own business and to build a good credit history. JOBS MFI provides long-term financial solutions to micro enterprises, improves their access to financing and contributes to the creation and maintenance of jobs.

Press contacts:

EIF: David Yormesor, e-mail d.yormesor@eif.org

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