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EBRD financing supports first foreign investment in Bulgaria’s food distribution sector
Bulgarian consumers will have a wider choice of food items at lower prices after a loan of US$ 12.8 million (€13.2 million) from the European Bank for Reconstruction and Development (EBRD) to Ramstore Bulgaria A.D., a wholly owned subsidiary of the Turkish retailer Migros Turk T.A.S.
The EBRD’s loan will finance the construction of a chain of hypermarkets and supermarkets across the country, improving the efficiency of the local food distribution sector. Consumers will benefit from better value for money, higher standards and a reliable supply of food items.
"This is one of the first foreign investments in the Bulgarian retail sector," said Hans Christian Jacobsen, Director of the EBRD’s Agribusiness team. "The EBRD is pleased to support such a project, as it will provide a better service for both consumers and food producers. We are also delighted to have the opportunity of working with Migros Turk, which is one of the most active and successful retailers in the Commonwealth of Independent States."
Food retailing and distribution in Bulgaria will undergo a significant change from the current practice of selling food primarily through open-air markets, small kiosks or privatised state supermarkets. The first hypermarket will be built in Sofia and will employ approximately 100 people.
Migros is the leading Turkish food retailer, with sales in 1999 of US$ 949 million (€920 million). In addition to its Turkish operations, Migros has expanded rapidly through eastern Europe and the Commonwealth of Independent States, with operations in Azerbaijan, Kazakhstan and Russia and now also in Bulgaria.
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