News and Analysis
Market Test for a Shared-risk Micro-financing Facility
The Fund Manager of Financial Instruments in Bulgaria EAD (FMFIB) is launching a market test as part of its preparations for a public procurement call to select financial intermediaries to implement a financing instrument designed to provide shared-risk micro-financing with a budget of BGN 50 million made available under the Operational Programme Human Resource Development (OPHRD) 2014-2020.
The facility structure involves combining public and private resources to provide micro-financing in order to promote entrepreneurship, including among certain vulnerable groups.
The FMFIB is to select financial intermediaries which would secure the necessary private co-financing and on-lend the resources through micro-financing to certain target groups of final recipients. Transparent and non-discriminatory selection of financial intermediaries will be ensured by implementing the procedures laid out in the Public Procurement Act.
The purpose of the market test is to help design the optimal structure for the financing instrument, taking into account the current market demands and the requirements of prospective financial intermediaries, the goals set by the operational programme making the financing available, and the policies of the FMFIB.
The OPHRD loan resources are to be made available at an interest rate of 0 %, and the micro-loan financing from OPHRD can up to 70 or 80 %, depending on the target group of the borrower. For more details, see the draft Technical Specifications available on the FMFIB website, where they have been published in compliance with Article 44 of the Public Procurement Act.
Suggestions and comments on the draft technical specifications can be made by 17:30 on 20 September 2016 at the latest, at the following e-mail address: MicrofinOPHRD@fmfib.bg
Suggestions and comments should be provided in free text format in the body of the e-mail message or be attached as a separate Word file, and not scanned or filled in in the various documents from the package.
The FMFIB reserves the right to arrange for meetings to hold structured interviews with interested institutions that are prospective financial intermediaries which have provided feedback on the relevant publications.
Structured interviews can be held exclusively with stakeholder institutions that are prospective financial intermediaries which have expressed interest by filling out and returning the market test questionnaire attached.
For more information and FAQs on the market test consultations, you can also reach us by phone at +359 2 801 40 50.