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Entrepreneurs across Bulgaria gain more access to finance
Hebrosbank to use EUR6 million EBRD, EU loan to expand SME finance
More than 30,000 Bulgarian entrepreneurs have created or expanded existing
businesses using finance from Hebrosbank, the country’s ninth-largest bank.
That figure is set to further increase with the help of a new €6 million loan
from the EBRD under a joint facility with the European Union that supports
small and medium-sized enterprises (SMEs) across central and eastern Europe.
The loan is being complemented with €388,000 from the EU to support staff
training and to ensure successful implementation of the loan. These amounts
are part of the EU/EBRD SME Finance Facility, a programme to promote SME
growth and development in the new EU member states, plus Bulgaria and Romania.
John Chomel-Doe, Director for Bulgaria at the EBRD, said Hebrosbank is an
important partner for the Bank because of its strategy to support the SME
sector in Bulgaria. One of the main challenges entrepreneurs face in countries
from central Europe to central Asia is access to finance. Across its 27
countries of operations, the EBRD, with partners like Hebrosbank, helps
thousands of entrepreneurs gain access to finance. By supporting SMEs in
Bulgaria we are together supporting the growth of the country’s private sector
and, ultimately, its economy, said Mr Chomel-Doe.
Gautam Vir, Chief Executive Officer of Hebrosbank, said the EBRD loan – the
second such loan his bank has drawn from the EBRD – reflects Hebrosbank’s
decade-long and successful strategy in supporting SMEs in Bulgaria. Mr Vir
said: “This project is important for Hebrosbank because it reflects the
confidence the EBRD has in our bank, its people, its strategy and its role in
promoting the Bulgarian economy by supporting entrepreneurs. We believe that
with our 58-branch network and modernised banking systems we shall
significantly boost the growth of the country’s SME sector.” Mr Vir added that
Hebrosbank’s vision for 2004 is to be the best service provider for SMEs and
retail customers and a recent customer satisfaction survey indicated the bank
is on target to achieving this goal.
The SME Facility was launched in 1999 under the Phare Programme – the main
channel for the EU's financial and technical cooperation with the EU accession
countries – with the EBRD, to encourage the growth and development of SMEs by
providing access to loans, leasing and equity finance from local financial
intermediaries. The budget earmarked for the Phare Programme as a whole is
about €1.5 billion a year.
The EBRD is the largest single investor in Bulgaria, with more than €848
million invested in over 46 projects.
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