BULGARIAN DEVELOPMENT BANK LAUNCHES INTEREST-FREE LOANS FOR SMALL AND MEDIUM BUSINESSES

The Bulgarian Development Bank ( BDB) launches interest-free loans for small and medium businesses under the EU-funds of OP Competitivenes, Deputy Prime Minister for Economic Development Daniela Bobeva announced.

The interest on loans from the Development Bank will be paid by the EU programs for the first two or three years of the term of the loan, BBR head Bilion Balev commented. According to him, interest on loans BDB will fall below 6%.

The Bank is in the process of restructuring and will become a microfinance institution for the smallest companies that will credit up to BGN. Priority will be given to lending to small and emerging businesses , export-oriented companies and youth employment. The interest rates will vary according to the development ratio of a region, being the lowest in the regions with very low growth and high unemployment rate.

In the words of Balev, all funds received by the BDB on credit lines were utilized except the EUR 20 million from China Development Bank , which has recently been granted.