Sofia, February 10 (BTA) - The European Investment Bank (EIB) Group doubled its investments in Bulgaria in 2021 compared to 2020, EIB Vice President Lilyana Pavlova said at the EIB Group's regular annual press conference on Thursday. EIB investments in this country in 2021 were five times higher than in previous years.

The EIB Group consists of the EIB and the European Investment Fund (EIF).

The Group provided loans, guarantees and equity commitments worth 948 million euro for projects in Bulgaria in 2021. This represents 1.43 per cent of the country's gross domestic product (GDP) and ranks Bulgaria third among EU Member States in aid level relative to GDP. Support under the European Guarantee Fund (EGF) in Bulgaria is expected to unlock 2.7 billion euro for small and medium-sized enterprises struggling under the impact of the COVID-19 pandemic.

The EGF was set up by the EIB Group with contributions from Bulgaria and other EU Member States to shield companies suffering from the COVID-19 crisis.

Of the 948 million euro invested in Bulgaria, 100 million went into infrastructure, 50 million euro were allocated for innovation, and 798 million euro supported SMEs. In 2021, EIB lending in Bulgaria for sustainable infrastructure, green urban development and businesses amounted to 176 million euro. The EIF committed 772 million euro in new operations for SMEs.

"Bulgaria ranks second in the EU after Portugal in the development of all financial products provided by the EIB," said Pavlova.

During the EIB Group's regular annual press conference, the EIF signed an agreement with CFN AD (a fintech start-up in Southeast Europe) for a guarantee instrument under the EGF which will allow companies in infrastructure construction to use bridge financing through factoring for up to 153 million euro. Participants in the press conference said that CFB AD is the first a fintech company in Southeast Europe to sign an agreement with the EIB.

Sofia-based CFN aims to provide gradual and long-term support to SMEs which currently represent over 70 per cent of all contractors and subcontractors in state-funded infrastructure projects, said the company's representative Levon Hampartzoumian. DS/YV