Two Banks to Cooperate in Funding Bulgarian Business Projects

The Bulgarian Development Bank (BDB) and the International Investment Bank (IIB) will cooperate in providing funds for Bulgarian business projects. This became clear after the two financial institutions signed a Memorandum of Cooperation in Sofia on Tuesday, the press office of the BDB informs. The memorandum governs the granting of syndicated loans to Bulgarian companies interested in developing their business and making new investments. According to the provisions of the memorandum, the two banks will share the risks on the loans, which would lead to larger volume of investments and better interest rates. IIB, which is a multilateral development bank with Bulgaria as its second largest shareholder, has been a partner of the Bulgarian Development Bank since 2012. In 2013, the Bulgarian Development Bank was provided with a credit line of EUR 20 M by the IIB to finance small- and medium-sized enterprises (SMEs) in Bulgaria. The funds were made available for a seven-year period and have been used for direct lending to companies and supporting Bulgarian businesses.