The European Investment Fund (EIF) and Raiffeisenbank Bulgaria, a subsidiary of Raiffeisen Bank International signed a guarantee agreement to increase lending to innovative SMEs and small mid-caps in Bulgaria.
The transaction benefits from the support of the European Fund for Strategic Investments (EFSI), which constitutes the heart of the Investment Plan for Europe.
The agreement will allow Raiffeisenbank to provide 35 million euros of loans to innovative companies over the next two years.
The loans will be enabled by an EIF guarantee under the “EU InnovFin finance for Innovators” initiative with the funding coming from the European Commission's Horizon 2020 programme.
The agreement will enable Raiffeisenbank to offer innovative companies additional financing at favourable conditions.
European Commission Vice-President Kristalina Georgieva reminded that this is the second agreement reached in less than six months through which Bulgarian SMEs will benefit under the Juncker Plan.
In October last year, EIF and CIBANK signed an agreement to provide 100 million euros to 1000 SMEs in Bulgaria.
Sofia News Agency