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EBRD, EC, Société Générale Expressbank support Bulgarian SMEs
BGN 19.6 million EBRD loan to a leading local bank will boost private sector
The EBRD is lending Société Générale Expressbank, a leading bank in Bulgaria,
Leva 19.6 million (€10 million) for on-lending to local small and medium-sized
enterprises (SMEs), with loans not exceeding €30,000 and €125,000 respectively.
The loan comes under the EU/EBRD SME Finance Facility and will be complemented
by a grant of €1,580,000 from the European Commission for technical assistance
and financial incentives.
John Chomel-Doe, EBRD country director for Bulgaria, said the loan will
address one of the key challenges facing the country ahead of EU-accession. 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 Société Générale
Expressbank’s strategy to increase its focus on this sector, he added.
Société Générale Expressbank is an active supporter of the local SME sector.
In 2005, the bank’s SME portfolio increased by 53 per cent, a figure Société
Générale Expressbank hopes to build on using the EBRD loan. The bank is
growing rapidly, reaching more than 300,000 clients through its network of 108
branches, and 1000 employees across Bulgaria. Société Générale Expressbank is
part of Société Générale Group, which is the fifth largest bank in the Euro
zone, widely represented in South Eastern Europe with subsidiaries in Romania,
Serbia and Montenegro, Slovenia, Croatia and Greece.
Philippe Lhotte, Chairman and CEO of Société Générale Expressbank, said the
bank is undertaking a strategy to develop further in the SME sector, offering
local businesses a wide range of products and services that will help build
new, or expand existing businesses. To achieve this objective, the partnership
with the EBRD and the European Commission will be very valuable, he added.
The EU/EBRD SME Finance Facility, a joint programme of the European Commission
and the EBRD, supports the development and growth of entrepreneurs by
facilitating their access to finance. Under this regional project covering 11
countries, the Bank is making available funding of €1.1 billion, of which €975
million has been committed to signed projects to date. The EC has contributed
€157 million in grant financing and technical assistance since the launch of
the Facility in 1999.
The EBRD is the largest foreign investor in Bulgaria, having committed nearly
€1.3 billion in 61 projects.
For further information, see: http://europa.eu.int/comm/enlargement.
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