- The Bank, which is a leading partner of businesses, is joining the guarantee program of the Bulgarian Development Bank (BDB) for overcoming the economic consequences of the spread of COVID-19;
- The instrument is applicable to micro, small and medium-sized companies from different sectors of the economy
UniCredit Bulbank has signed an agreement with the Bulgarian Development Bank (BDB) for joining the portfolio guarantees program in support of the liquidity of micro, small and medium-sized enterprises affected by the COVID-19 pandemic.
UniCredit Bulbank will grant loans of up to BGN 300 thousand under the program. Clients will be able to apply for a new working capital financing as well as to express interest in having existing investment and working capital loans included in the program. The loans have a long grace period of up to 3 years, and are granted under preferential collateral requirements - a coverage of no more than 20% of the amount of the requested financing.
The applicants must fulfill at least one of the following criteria: have a reduced turnover due to the COVID-19 pandemic, have not received due payments from clients or have not repaid amounts to suppliers, have export contracts that were canceled or import supplies that were terminated, have closed their manufacturing facilities and offices, or have reduced the number of their employees.
The program is aimed at companies that experienced difficulties in 2020 as a direct negative effect of the COVID-19 pandemic and serviced their loans regularly last year without any defaults exceeding 90 days.
The instrument is applicable to micro, small and medium-sized companies from various sectors of the economy. The BDB data show that the sectors most affected by the pandemic are transport, tourism, hotel management and food service sector, wholesale trade.
“We already have a successful partnership with the BDB under the program for interest-free loans for individual customers, having granted more than 1,400 loans. Providing support to businesses, too, we - banks, together with the BDB, are part of the solution to the crisis caused by CoVid-19,” commented Teodora Petkova, Chief Executive Officer and Chair of the Management Board of UniCredit Bulbank.
When presenting its financial results for the first half of the year last week, the UniCredit group announced that during the second quarter of the year it granted state-guaranteed loans and gave the opportunity for postponement of loan repayment in the total amount of EUR 41 billion in all countries where the group is operating.
A portfolio guarantee program in support of the liquidity of micro, small and medium-sized enterprises (SMEs) affected by the state of emergency and the COVID-19 epidemic by the Bulgarian Development Bank (BDB):
- The program can be used for providing new working capital financing, as well as for including existing investment and working capital loans;
- Refinancing is not allowed;
- Guarantee coverage ratio - 80%;
- Maximum amount of exposure to a borrower and related parties - BGN 300 000;
- Maximum collateral ratio - 20%;
- A grace period for the interest and principal is possible;
- The loans can be used for current liquidity expenses - salary payments, payment of liabilities to suppliers, etc.
- The instrument is applicable to micro, small and medium-sized companies from various sectors of the economy;
- The client shall pay a guarantee fee, which is due and payable to the BDB.
Additional media information:
Ekaterina Ancheva, tel +359 (0) 2 9264 963, flbufsjob/bodifwbAvojdsfejuhspvq/ch
Beatris Nikolova, tel +359 (0) 2 9232 528, cfbusjt/ojlpmpwbAvojdsfejuhspvq/ch
Victoria Blajeva, tel +359 (0) 2 9264 993, wjlj/ebwjepwbAvojdsfejuhspvq/ch