The Fund of Funds Opens the Offers Received under the Rural Credit Facility
Today, 11 August 2021, a public meeting was held on the premises of the Fund of Funds (FоF), to open the initial offers received under the procurement procedure for the Rural Finance Facility. The financing is provided by the Rural Development Programme 2014-2020, co-financed by the European Agricultural Fund for Rural Development.
The total budget of the Rural Credit Facility is BGN 38 million, distributed in three lots. It is expected that future financial intermediaries will add private capital to available public funding. Thus, the total amount of loans will exceed BGN 60 million.
The tenderers who submitted tenders within the deadline are as follows:
First Investment Bank AD — for all lots;
Sys Credit AD — under 1 lot.
Following the launch of the facility, farmers and other businesses in rural areas will be able to benefit from low-interest loans. Farmers will be able to able to obtain financing of up to BGN 2 million, and businesses engaged in non-agricultural activities in rural areas, including production, trade, crafts, and any type of service, such as accounting, utilities, repairs, veterinary medicine, information, care for the elderly, etc. will also be eligible for loans on preferential terms. The funds can be used for investment and working capital alike.
The Fund of Funds will co-finance two types of low-interest loans: complementary to grant assistance already received (FoF participation up to 50 % of the loan amount) and stand-alone loans (FoF participation up to 70 % of the loan amount).
The preferential conditions will include interest at a rate lower than market levels, streamlined application conditions, reduced requirements for collateral, a longer grace period, and easier access to financial resources for specific target groups (small farms, young farmers). It is expected that the funds will support at least 130 enterprises engaged in agriculture or the processing of agricultural products, as well as in non-agricultural activities in rural areas.
After today's opening, the evaluation of the submitted offers is forthcoming.