The European Investment Fund said it signed agreements with four Bulgarian banks allowing them to lend up to 260 million euro ($338.6 million) to small and medium-sized enterprises (SMEs) in the country.
The four banks will double the initial budgetary allocation of 130 million euro and channel an amount equal to approximately 260 million euro to Bulgarian SMEs in loans with low interest rates.
"With the JEREMIE funding, the four banks will be able to extend loans with reduced interest rates of at least 50% to over 3,300 SMEs across Bulgaria looking to strengthen or expand their businesses," the EIF said. The agreements were signed with Allianz Bank, First Investment Bank, ProCredit Bank and Societe Generale Expressbank as part of the European Union's Joint European Resources for Micro to Medium Enterprises (JEREMIE) initiative.
The EIF is currently assessing the possibility of additional agreements under this instrument.