Operational Programme Human Resources Development 2014-2020 (OPHRD), which has a total budget of BGN 2 136 251 557, includes financing from the European Social Fund (ESF), the Youth Employment Initiative (YEI) and national co-financing.
OPHRD 2014-2020 supports the achievement of the national goals in the area of employment, fighting poverty and social exclusion in the context of the Europe 2020 Strategy.
The goals of the Programme are addressed along five priority axes with defined investment priorities. Implementation of financial instruments is envisaged in Priority Axis 1 - Achieving higher and better-quality employment, and Priority Axis 2 - Reducing poverty and promoting social inclusion.
A Financing Agreement between Bulgaria’s Ministry of Labour and Social Policy, as the Managing Authority for the Programme, and Fund Manager of Financial Instruments in Bulgaria EAD (FMFIB EAD) was signed on 17 May 2016. Under the agreement, FMFIB EAD is contracted to manage BGN 70 024 516 from OPHRD 2014-2020, earmarked for providing support through financial instruments.
The resources budgeted for financial instruments in OPHRD 2014-2020 will be made available as micro-financing and guarantees to compensate the short supply of financial products, in support of the target groups specified in the Operational Programme.
The financial instrument Risk-sharing Micro-Financing facility has the goal to improve access to financing for eligible final recipients and raise additional private capital, focusing on the implementation of public policies in the area of employment.
In addition, there is a financial instrument for guarantees which cover losses on portfolios of micro-loans with a cap on losses.