News and Analysis

The Fund of Funds opens the proposals received in applicants in the call for the selection of financial beneficiaries under one of the guarantee products

The financial instrument seeks to provide support to start-ups and social enterprises

13.08.2019

Today, 13 August 2019, on the premises of the Fund of Funds (FoF), a public meeting took place at which the members of the committee for selection of financial intermediaries opened the proposals received from applicants in the call. The call was launched for the purpose of selecting contractors for the implementation of the financial instrument Loss-capped microlending portfolio guarantee, financed by Operational Programme Human Resources Development (OPHRD) 2014—2020 and co-financed by the European Social Fund.

Proposals under all 8 lots were received within the time period specified by the Contracting Authority.

The portfolio guarantee will cover up to 80 % of the credit risk assumed by the financial intermediary under each microloan included in the guarantee portfolio up to the loss cap at portfolio level. The microloans to be provided will target start-ups (including start-ups established by persons from vulnerable groups (persons who have been unemployed for more than 6 months, persons with disabilities, and young people up to the age of 29 years) and social enterprises.

The funds will be disbursed to finance activities relating to the acquisition of tangible and intangible assets; working capital for the development and expansion of the activity of the company or self-employed individual; the development and improvement of the skills of workers or employees or of the entrepreneur in the case of self-employment.

The total budget of the financial instrument is BGN 20 mln. and the microloans expected to be extended to final beneficiaries—BGN 100 mln., with the maximum loan to be extended to eligible final recipient in the amount of BGN 97 791 or EUR 50 000.

Proposals were received from the following participants:

  1. Credit Plus OOD — under Lots 1, 2 and 3;
  2.  UniCredit Bulbank AD—under Lots 4, 5, 6. 7 and 8.

The proposals will be reviewed shortly and invitations for the submission of initial offers will be sent to eligible applicants.