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Raiffeisenbank (Bulgaria) EAD and The Council of Europe Development Bank signed a new EUR 20 Mio Loan Agreement to benefit small and medium-sized enterprises
21 June 2006
Raiffeisenbank (Bulgaria) EAD and the Council of Europe Development Bank (CEB) signed the Framework Loan Agreement to benefit small and medium-sized enterprises (SMEs) throughout Bulgaria. In January 2006, the CEB, with the support of the Bulgarian Government, approved Raiffeisenbank's application for a loan facility amounting to EUR 20 Mio.
The funds under the credit facility will be applied to the partial financing of investment projects in favor of Bulgarian SMEs, thereby reinforcing their operating position and ability to maintain and create jobs. CEB will fund up to 50% of each project, while the additional funding will be provided by RBBG. The funds will be available at favorable conditions to SMEs, active in various economic sectors, except for agriculture, employing less than 250 people and with annual turnover of less than BGN 15 million or long-term tangible assets of less than BGN 8 Mio.
The CEB loan to Raiffeisenbank (Bulgaria) is the third facility extended by CEB to a member of the Raiffeisen group in Bulgaria. The first EUR 20 Mio Loan Agreement was signed with Raiffeisenbank (Bulgaria) EAD in 2003 for SME-financing and the second EUR 10 Mio Loan Agreement was signed with Raiffeisen Leasing Bulgaria OOD in 2006 to benefit SME-Lessees throughout the country.
“Following the successful utilization of the CEB credit lines by Raiffeisenbank (Bulgaria) and by Raiffeisen Leasing Bulgaria, the fact that CEB is extending a third facility to a member of the Raiffeisen group in Bulgaria is of great importance to us", said Momtchil Andreev, Chairman of the Management Board and CEO of Raiffeisenbank (Bulgaria).
The CEB is particularly pleased to continue its successful relationship with the Raiffeisen group in Bulgaria. CEB has approved over EUR 120 Mio of local projects since 1995, covering essentially the fields of health, social housing, flood prevention, and the creation and preservation of jobs in SMEs.
The loan facility from CEB for financing small and medium-sized enterprises is the next step to enhancing Raiffeisenbank's presence on the SME sector in Bulgaria, reinforcing its leading position as one of the major lenders to this industry segment.
