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Bulgarian govt decides to inject up to 358 mln euro in development bank's capital
26 03 2020Bulgaria's government said that it has decided on Wednesday to increase the capital of the Bulgarian Development Bank (BDB) via cash contributions of up to 700 million levs ($387 million/358 million euro), in order to allow the BDB to support businesses affected by the coronavirus pandemic.The measures to be taken by the BDB include the issuance of portfolio guarantees to commercial banks so that they can be more flexible and local small and medium-sized enterprises (SMEs) have easier access to financing, the government said in a statement.Previously, finance minister Vladislav Goranov had said that the capital of the BDB will be increased by 500 million levs.On Tuesday, prime minister Boyko Borissov said Bulgaria will introduce a package of financial measures worth 4.5 billion levs to support businesses under strain from the coronavirus disease (COVID-19) and preserve jobs. The measures include increasing the capital of BDB, government-backed payment of 60% of the salaries of employees who might otherwise be fired, delaying the payment of annual corporate tax until June 30 and offering interest-free loans to workers put on leave.