SOFIA (Bulgaria), Dec. 30 (SeeNews) – Eurobank Bulgaria, operating under the Postbank brand, said it had signed a 137 million lev ($ 85.9 million / € 70.0 million) guarantee agreement with the State-managed Fund of Funds (FoF) to support the liquidity needs and projects of small and medium-sized enterprises (SMEs) affected by the coronavirus crisis.
The new instrument is receiving funding under the EU’s Innovations and Competitiveness 2014-2020 Operational Program, the lender said in an emailed statement on Tuesday.
The guarantee agreement will allow Eurobank Bulgaria to offer loans at preferential interest rates and relaxed collateral requirements, as the FoF will guarantee up to 80% of the value of personal loans and up to 25% of the value of the loans in the portfolio.
Businesses can be supported with investment loans with an optional grace period of up to 24 months and working capital loans with a grace period of up to 12 months, including loans to overcome. financial difficulties due to the coronavirus pandemic. The funding will be extended for a period of 12 to 120 months, for working capital of up to 60 months, Eurobank Bulgaria added.
The FoF manages funding under four operational programs. Its main activity is the structuring and management of financial instruments co-financed by the European Structural and Investment Funds during the 2014-2020 programming period.
(1 euro = 1.95583 lev)
Eurobank Bulgaria AD is one of the largest banks in South Eastern Europe. For more references, take a look at Top 100 banks