New government programme to support businesses

Photo: BTA Kiril Petkov (L) and Asen Vassilev

Under a new programme, called Vazrazhdane (Revival), the government is making BGN 2.5bn in capital available to corporate beneficiaries, Finance Minister Asen Vassilev told journalists on Tuesday, presenting the new facility together with Economy Minister Kiril Petkov.

“I am glad we will work with banks which know their clients well,” Vassilev said. Under the Vazrazhdane Programme, businesses may receive money for use as operating capital or investments. The programme does not have to be notified by the European Commission, Vassilev said.

The government will share in covering the systemic risk. It will cover 80% of the credit exposure.

Loans will be issued at market-level interest rates with a 12-month grace period. According to Petkov, the lack of a loan repayment security requirement is beneficial for the companies.

The amount of money to be provided to a borrower may be up to 70% of the company's turnover in 2019 or 2020, or up to BGN 3m.

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