Financial resources

• public resources in the amount of BGN 353.3 million;
• additional private co-financing from the financial intermediaries.

Goals of the instrument

• improve urban environment (including public transport, culture and sport infrastructure);
• stimulate economic growth in the regions through the development of economic development zones in the cities, improved energy efficiency of single-family residential buildings and student dormitories;
• promote the development of tourism related to immovable cultural heritage of national or world importance.

Final recipients

• municipalities and municipal enterprises;
• private companies;
• public/private partnerships;
• private citizens.

Type of financing

• low-interest investment loans and working capital loans, including non-refundable VAT;
• up to EUR 20 million for urban environment and up to EUR 10 million for regional tourism;
• a repayment term of up to 20 years and a grace period of up to 3 years;
• guarantees for the financial intermediaries of up to 80% per individual loan and up to 25% of the entire portfolio;
• low interest rates;
• no management fee chargeable on the public resources;
• relaxed collateral requirements;
• a low level of self-financing by final recipient (0% -15%);
• for certain sectors, an option to combine the financial instrument with grant support.

Source of the public resources

Operational Programme Regions in Growth 2014 — 2020 co-financed from the European Regional Development Fund

Current stage of the instrument: active on the market.

Financial intermediaries

For the regions of Southern Bulgaria and the City of Sofia, the Fund for Sustainable Cities Consortium (FSC):

For the region of Northern Bulgaria, the Regional Urban Development Fund (RUDF)

The Fund of Funds invests additional resources in urban environment under the Joint European Support for Sustainable Investment in City Areas initiative (JESSICA). Further information is available here.