Online/Mobile
Branches and ATMs
0700 1 17 17
Raiffeisenbank (Bulgaria) EAD announces a competition for financement of small businesses “Initiative 2005”
10 May 2005
Raiffeisenbank, jointly with European Commission, Kreditanstalt fur Wiederaubau (KfW) and Counsel of Europe Development Bank invite small enterprises to present investment project for financement through “Initiative 2005”.
National competition for financement of small businesses “Initiative 2005” announced Raiffeisenbank (Bulgaria) EAD. 25 investment projects of small enterprises will be financed by the bank at preferential terms and conditions. The winning projects will be selected among all the investment projects of small enterprises, which have applied for financement according the General conditions of the bank during the period between May 1st and June 30th 2005. The preferences for the 25 “Initiative 2005” winning projects include lower interest for the whole loan repayment period and Golden credit card VISA Gold with euro 7 500 limit that could be used right away be the owners of the enterprise. The annual interest rate* for the first highly estimated 5 projects within Raiffeisenbank’s “Initiative 2005” is 6%, for the 10 projects rated 2nd place the annual interest is 6,50% and for the 10 projects rated 3rd place the annual interest is 7%. These levels are valid for the whole period of the credit, which can be up to 7 years. The bank’s investment loan is foreseen for acquisition of real estate aimed business enlargement, purchase of equipment, machinery and installations.
For financing within “Initiative 2005” can apply small enterprises from all over the country, registered according the Bulgarian legislation with annual turnover up to BGN 2 million. Professionals like physicians, lawyers etc. can also be financed within “Initiative 2005” after presented and approved investment project. Within “Initiative 2005” Raiffeisenbank finances newly established and operating companies, which have presented business plans and financial security, for which is needed an investment loan up to euro 200 000.
The 25 granted projects will be presented during an open for the media ceremony, to be hold on July 12th 2005.
The application procedure within Raiffeisenbank’s “Initiative 2005” is over-simplified. All the projects initially apply for financement according the General conditions of the bank for financement of investment projects. The small enterprises and professionals, applying for loans, will be receiving the financement right with the general terms and interests. Raiffeisenbank’s credit committee will afterwards evaluate for a second time the presented during the competition period projects in aspect of the competition criteria. The investment projects, applying for financement within “Initiative 2005” will be evaluated according to 4 main criteria arranged in the following order: return on investment, participation of the company with own funds, implementation of new machines and technologies and opening of new working places.
Main aim of Raiffeisenbank’s national competition “Initiative 2005” is to encourage the enterprises and to underline the important role, which the small business has in the regional and social development, by guaranteeing working places and the development of the municipalities. In the spirit of support of the initiative, Raiffeisenbank supports the small enterprises in the country to face successfully the year 2007 – the accession to EU and to meet the strong competition and the challenge of the future accession. With the national competition “Initiative 2005” Raiffeisenbank to improve the accessibility of the small enterprises to bank financement.
Further information regarding the national competition “Initiative 2005”can be found in all the offices of Raiffeisenbank (Bulgaria) EAD and calling the bank Call-center 0700 10 000.
