Fund of Funds Readying Guarantee Scheme for SMEs
NW 18:35:02 14-04-2020
DS1851NW.108
108 ECONOMY - SME - FINANCING
Fund of Funds Readying
Guarantee Scheme for
SMEs
Sofia, April 14 (BTA) - The Fund Manager of Financial Instruments in Bulgaria (FMFIB) EAD is preparing a new guarantee scheme especially designed to meet the liquidity needs of small and medium-sized enterprises, the wholly State-owned company's CEO Svetoslava Georgieva told a news briefing at the Council of Ministers on Tuesday.
The FMFIB will furnish 170 million leva guarantees to banks, on which they will be expected to provide a loan portfolio of up to 850 million leva, mainly for working capital in the form of up to 10-year long-term easily accessible loans on the softest possible terms, Georgieva said.
The idea is to provide temporary support to economically insecure enterprises during a crisis whose business has nearly collapsed. An option to extend these loans to SMEs interest-free is being considered and to prolong the grace period for principal repayment and interest payment.
Another scheme operated by the FMFIB has 24 million leva, to which further financing may be added, and targets support for recent micro start-ups and self-employed people aged under 29, persons with disabilities and unemployed for over six months. They are eligible to borrow up to 50,000 leva for working capital and investment on easy terms and at interest far below the market rates.
"Talks are underway with the Ministry of Labour and Social Policy on easing the terms of this instrument even further and even offering interest-free loans," Georgieva said.
A third option is a diversified portfolio of active market instruments. There, 150 million leva are available from intermediary funds for equity investments, risk-bearing investments in support of start-ups, innovative high-tech enterprises which are expected to help a faster economic recovery.
The FMFIB also has at its disposal a little over 350 million leva for financial support of municipalities and other urban development projects. "There are plans to open up this product to transport, tourism and healthcare as an additional support to the sectors worst affected by the pandemic crisis," the CEO added.
NV/LG/ДЛ/
DS1851NW.108
108 ECONOMY - SME - FINANCING
Fund of Funds Readying
Guarantee Scheme for
SMEs
Sofia, April 14 (BTA) - The Fund Manager of Financial Instruments in Bulgaria (FMFIB) EAD is preparing a new guarantee scheme especially designed to meet the liquidity needs of small and medium-sized enterprises, the wholly State-owned company's CEO Svetoslava Georgieva told a news briefing at the Council of Ministers on Tuesday.
The FMFIB will furnish 170 million leva guarantees to banks, on which they will be expected to provide a loan portfolio of up to 850 million leva, mainly for working capital in the form of up to 10-year long-term easily accessible loans on the softest possible terms, Georgieva said.
The idea is to provide temporary support to economically insecure enterprises during a crisis whose business has nearly collapsed. An option to extend these loans to SMEs interest-free is being considered and to prolong the grace period for principal repayment and interest payment.
Another scheme operated by the FMFIB has 24 million leva, to which further financing may be added, and targets support for recent micro start-ups and self-employed people aged under 29, persons with disabilities and unemployed for over six months. They are eligible to borrow up to 50,000 leva for working capital and investment on easy terms and at interest far below the market rates.
"Talks are underway with the Ministry of Labour and Social Policy on easing the terms of this instrument even further and even offering interest-free loans," Georgieva said.
A third option is a diversified portfolio of active market instruments. There, 150 million leva are available from intermediary funds for equity investments, risk-bearing investments in support of start-ups, innovative high-tech enterprises which are expected to help a faster economic recovery.
The FMFIB also has at its disposal a little over 350 million leva for financial support of municipalities and other urban development projects. "There are plans to open up this product to transport, tourism and healthcare as an additional support to the sectors worst affected by the pandemic crisis," the CEO added.
NV/LG/ДЛ/
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