Businesses Can Now Benefit from New Resources under the Fund of Funds Recovery Programme

Seven banks to lend to businesses to keep them growing


In response to the challenges in the wake of the COVID-19 pandemic, the Recovery Programme, a portfolio guarantee scheme, has been developed and launched to enable banks in Bulgaria to accelerate new lending to support businesses across the country.

Due to the high level of interest from businesses and the rapid contracting out of the resource, and taking into account the ongoing need to improve access to finance for Bulgarian businesses, the Fund of Funds (FoF) has committed an additional BGN 96.2 million to provide liquidity and funds for new investment, transformation and growth. The funds are provided within the Operational Programme "Innovation and Competitiveness" under the REACT-EU facility.

Small and medium-sized enterprises will now be able to benefit from support through the following banks:


- DSK Bank;

- UBB;

- Postbank;

- Raiffeisenbank;

- Tokuda Bank;

- Unicredit Bulbank.


Guarantee instruments under the Recovery Programme enable Bulgarian businesses to continue their development despite the challenges of the environment. The terms of the guarantee ensure that the loans would be granted quickly, with a minimal administrative burden and without the need to set up tangible collateral.

The Fund of Funds will assume up to 80% of the credit risk of the partner banks for each new loan made under the programme to small and medium-sized enterprises (SMEs), with potential losses to the public resource capped at 50% of the total cover for the portfolio. The final recipients are expected to be supported with new loans totalling BGN 240.4 million

The main benefits under the Recovery Programme are:

- Significantly enhanced access to business loans for Bulgarian SMEs with a track record of at least three years;

- Financing with no tangible collateral requirements, except for personal guarantees set up by the owners;

- Fast-track approval and disbursement;

- An option to use a twelve-month grace period for the loan principal;

- Access to long-term lending for up to 84 months;

- Administrative burden for the customer reduced to the bare minimum;

- Lending up to BGN 3 million but no more than 70% of the turnover for 2019 or 2020, whichever annual turnover was greater; up to the amount calculated under the de minimis rule.