Luxembourg, 09/10/2006 (Agence Europe) - Last week's decision by the European Investment Bank to expand its support to small and medium enterprises (SMEs) in Bulgaria was confirmed through a new global loan made to DSK Bank. The EUR 30 million global loan will be used to give more access to finance for small and medium enterprises as well as municipal infrastructure projects in Bulgaria.
The EIB loan will enable DSK Bank to onlend using the favourable conditions of the EIB for up to € 20 m to SME clients. Another € 10 m portion of the loan will support infrastructure finance notably in the municipal sector. This amount will be complemented by a EUR 1.25 m grant from the European Commission under the EU-EC Municipal Finance Facility. DSK Bank is the first banking partner in Bulgaria to participate in the EIB-EC-Municipal Finance Facility, which supports the development of Bulgarian municipalities via EU grants.
The EIB has provided since the 1990's over EUR 180 million in global loans to support small businesses in Bulgaria through 8 local banks. A press release explained that, “The EIB is committed to supporting the development of Bulgaria's economy to help to prepare the country for EU membership. The EIB's cumulative financing in Bulgaria stands at EUR 1,24 billion and relates to investments in a wide range of key economic sectors”. (ol)