The European Investment Bank (EIB) is lending EUR 30 million to CIBANK JSC, Bulgaria, to finance projects mounted by small and medium-sized enterprises (SMEs), midcap companies and municipalities in Bulgaria.
The EIB loan will co-finance projects contributing towards regional development and strengthening the competitiveness and productivity of SMEs and midcap companies in Bulgaria. The EIB funds will also support projects in the areas of industry and services, and will be coupled with grants from the European Commission (EC) and the Kozloduy International Decommissioning Support Fund (KIDSF).
Mr Wilhelm Molterer, EIB Vice-President responsible for Bulgaria, commented: “EIB funds will support projects contributing to growth and development that are implemented by SMEs and midcap companies. These sectors represent the backbone of the economy, create a significant amount of employment, especially new job opportunities and generate a substantial portion of GDP in Bulgaria”.
This loan is in line with the EIB’s priority of providing better access to long-term finance to Europe’s SMEs to help mitigate the effects of the financial crisis. To this end, the EIB is joining forces with well established financing institutions, like CIBank, that know the local market and have SMEs, midcap companies and municipalities as their customers.
This loan represents the continuation of the EIB’s successful cooperation with CIBank. The Bank has previously granted a EUR 25 million loan to CIBank providing intermediated financing for investment by SMEs.
Background:
The EIB is the long-term lending bank of the European Union. Its main task is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Besides supporting projects in the EU Member States, its lending activities also include financing investments in future Member States of the EU and EU partner countries.
The EIB raises substantial volumes of funds on the capital markets, which it lends on favourable terms to projects furthering EU policy objectives. It is the largest supranational borrower and its consistent AAA rating is underpinned by firm shareholder support, a strong capital base, excellent asset quality, conservative risk management and a sound funding strategy.