EBRD and Raiffeisenbank (Bulgaria) Continue to Promote Farmers and Rural Entrepreneurs

 

• Raiffeisenbank (Bulgaria) EAD and EBRD signed second EUR 10 million Credit Line for rural and agricultural sectors

• Credit line will help promote the financing of projects of farmers and entrepreneurs from the private sector based in rural areas in the country

• Credit line is available under the EU/EBRD SME Finance Facility and is supported with grant funds provided by the European Commission

Raiffeisenbank (Bulgaria) EAD and the European Bank for Reconstruction and Development (EBRD) have signed a second EUR 10 million Credit Line to be used to promote the financing of projects of farmers and entrepreneurs from the private sector based in rural areas in the country. The credit line is available under the EU/EBRD SME Finance Facility and is supported with grant funds provided by the European Commission.

The facility will improve the access to finance for farms and small enterprises in rural areas of Bulgaria to expand their businesses. Recipients of the loan can be farmers, small and medium sized enterprises, cooperatives, sole proprietors, or any other legal entities operating in rural regions. The beneficiaries should employ no more than 100 staff, and should have majority private sector ownership and control, as well as annual turnover of no more than EUR 7 million or a maximum balance sheet total of EUR 5 million.
"Thanks to this facility, Raiffeisenbank will ensure continuous support of the business of Bulgarian farmers and entrepreneurs operating in rural areas. The first EUR 10 million Rural Credit Line was successfully implemented by the end of 2008 enabling Raiffeisenbank to finance more than 770 loans to farmers and SMEs to the total amount of EUR 10.8 million", said Momtchil Andreev, CEO of Raiffeisenbank (Bulgaria).
This facility is the EBRD’s second EUR 10 million Rural Credit Line for Raiffeisenbank (Bulgaria) and the seventh Finance Facility granted to a member of the Raiffeisen group in the country. Previous financing facilities provided by the EBRD covered SME finance (both with Raiffeisenbank (Bulgaria) and Raiffeisen Leasing Bulgaria), as well as residential and industrial energy efficiency.

James Hyslop, EBRD country director for Bulgaria, said, "In these difficult global conditions, the EBRD is providing a loan to Raiffeisenbank (Bulgaria) to continue lending to micro, small and medium enterprises in rural areas that need funding support more than ever before. Raiffeisenbank (Bulgaria) has proved to be a strong partner for the EBRD in increasing support to SMEs all over the country."
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 EBRD will make available funding of EUR 1.35 billion, of which EUR 1.2 billion has been committed to signed projects to date. The EC has contributed EUR 197 million in grant financing since the launch of the programme in 1999.
The EBRD is the largest investor in Bulgaria with over EUR 1.7 billion committed to projects across the country. Working with its many partners, the EBRD has mobilised more than EUR 6.2 billion for projects in Bulgaria.
In 2008, Raiffeisenbank (Bulgaria) kept its leading position in financing SMEs. Its loan portfolio in the segment reached nearly BGN 2 billion, or up 32 per cent as against 2007. Compared to 2007, overall profit after tax increased by 22 per cent in 2008, reaching BGN 132.6 million.

The EBRD, owned by 61 countries and two intergovernmental institutions, is supporting the development of market economies and democracies in countries from central Europe to central Asia. www.ebrd.com

Raiffeisenbank (Bulgaria) EAD was established in 1994. The bank is fully owned by Raiffeisen International Bank-Holding AG. Raiffeisen International operates one of the largest banking networks in CEE, covering 17 markets across the region through subsidiary banks, leasing companies and a range of other financial service providers. The group's more than 63,000 employees service over 14.7 million customers via more than 3,200 business outlets. Raiffeisen International is a fully-consolidated subsidiary of Raiffeisen Zentralbank Österreich AG (RZB), which owns about 70 per cent of the common stock. The remainder is in free float, with the shares listed on the Vienna Stock Exchange. RZB is a leading corporate and investment bank in Austria and the central institution of the Austrian Raiffeisen Banking Group, the country's largest banking group.