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Bulgaria's President visits EBRD
The European Bank for Reconstruction and Development today welcomed to its London headquarters the President of the Republic of Bulgaria, Petar Stoyanov, and senior members of the country's new Government, including Nikolay Vassilev, Deputy Prime Minister and Minister for the National Economy. The Bulgarian delegation met with members of the EBRD's management, including President Jean Lemierre. President Stoyanov then addressed the EBRD's Board of Directors, which represents the institution's 62 shareholders.
During his meeting with President Stoyanov, Mr Lemierre affirmed the EBRD's support towards Bulgaria. To date the Bank has committed over €534 million, which together with co-investment comes to over €1.8 billion. "Bulgaria has been successful in stabilising its economy and has regained momentum in its transition to a market economy," Mr Lemierre said. "It is important to build on this success. That includes continuing to strengthen the business climate in Bulgaria." Investors, Mr Lemierre added, are much more inclined to invest in those countries that offer a business climate that is transparent and enforces the rule of law fairly. This is particularly important given the growing concerns of investors over a possible global slowdown.
In May the EBRD agreed to invest €21.5 million in Balkanpharma, Bulgaria's leading producer of pharmaceuticals, to support the modernisation of three production sites. The deal underpins efforts by the company to raise production standards to good manufacturing practice levels, a requirement under both Bulgarian and European Union health guidelines, which will allow the company to maintain traditional export and domestic markets and increase its access to European markets.
The EBRD agreed in June to provide €1.2 million in equity and a loan of €5 million to ProCredit Bank, which is due to open for business in the autumn. Procredit Bank will provide financial services to micro and small enterprises (MSEs), a sector which is not yet well served by traditional banks. It will start operations in Sofia, with the aim of covering 12 regions within two years, and will provide commercial loans as well as normal retail bank services, including current and savings accounts.
Also this year, the EBRD was chosen to administer a special fund for the decommissioning of units one and three at Kozloduy Nuclear Power Plant. The Bank has been administering similar funds in eastern Europe since 1993.
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