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Commercial Bank Allianz Bulgaria joins EU/EBRD SME Finance Facility
€5 million loan to support local small businesses
The EBRD is lending Commercial Bank Allianz Bulgaria €5 million to support the
development of local small and medium-sized enterprises. The loan comes under
the EU/EBRD SME Finance Facility and is being complemented by a €1
million-grant from the European Commission for technical assistance and
financial incentives.
James Hyslop, EBRD country director for Bulgaria, said the loan will support
the growth of Bulgaria’s private small business sector by facilitating their
access to finance. A vibrant SME sector is a prerequisite for a strong
economy. In order to grow, these companies need long term funds, and the EBRD
welcomes CB Allianz Bulgaria strategy to increase its focus on this sector, he
added.
CB Allianz Bulgaria, majority-owned by Germany’s Allianz Group, is a universal
bank offering a full range of banking services and focusing on the SME and
retail sector through a network of 100 branches and representative offices in
the country.
Georgi Momchilov, Procurator of CB Allianz Bulgaria, said with their
flexibility SMEs are a major engine for economic development. In order to be
competitive and to meet European standards, these enterprises need
investments, especially in preparation for Bulgaria’s accession to the
European Union. Providing finance to the SMEs represents our commitment to
this process, he underlined.
CB Allianz Bulgaria aims to use the proceeds of the EBRD loan and the EC grant
to streamline its approach to SME lending. The EBRD has an important strategic
partnership with Allianz Group, whose parent company Allianz AG is the largest
insurer in the EBRD’s countries of operations.
The EU/EBRD SME Finance Facility, a joint programme of the European Commission
and the EBRD, supports the development and growth of SMEs by facilitating
their access to finance. Under the programme, the Bank will make available
funding of €1.1 billion, of which €1,056.5 million has been committed to
signed projects to date. The EC has contributed €156.75 million in grant
financing since the launch of the programme in 1999.
The EBRD is the largest investor in Bulgaria with over €1.3 billion committed
to projects across the country. Working with its many partners, the Bank has
mobilised more than €5.4 billion for projects in Bulgaria.
For further information about the Phare programme, the main channel for the
EU’s financial and technical cooperation with accession countries, see:
http://europa.eu.int/comm/enlargement.
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