BACB has signed a guarantee agreement with the National Guarantee Fund (NGF) at the amount of BGN 8 million. This will ensure lending over BGN 16 million.
Guarantees issued by the NGF are free of charge for SMEs and help them achieve more favorable conditions when applying for business loans. The guarantees of the Fund may reduce the required movable and immovable assets that the borrower has to offer as collateral to the Bank.
The National Guarantee Fund (NGF) will issue guarantees totaling up to 8 million leva, and will ensure up to 50% of each BACB loan. The total amount of loans that can be granted with a guarantee from NGF will be at least BGN 16 million.
Loans on which the NGF will issue guarantees may be with investment purpose for the purchase of machines and equipment, as well as for the purchase of agricultural machinery. Business loans to finance projects in all operational programs of the EU will also be guaranteed under the new scheme.
The agreement to include credit contracts in the guaranteed portfolio expired on September 30, 2015.