The Bulgarian Development Bank (BDB) has created a new financial instrument in support of the tourism industry. It is a loan program worth BGN 60 million. It was started with the signing of a Memorandum between the Minister of Tourism Hristo Prodanov and the two executive directors of BDB Zhivko Todorov and Vladimir Georgiev.
Commercial banks distrust the representatives of the sector because of their difficulties related to the pandemic. “Even during the coalition negotiations, we decided with BDB to create a product that would support the tourism business,” commented Hristo Prodanov.
The new principal of the bank in the person of the Minister of innovation and growth Daniel Lorer hinted that the next program to be presented will be in the field of agriculture. According to him, BDB has sufficient own resources for the currently announced credit program. Even if the interest is greater, BDB will have the resources to provide additional funds.
Remember the stories of the summer and the state in which we found the bank. We are starting the new year with an example of what the bank will be like from now on, “said Laurer.
The new BDB product
The funds are intended for micro, small and medium-sized companies in the restaurant and hotel industry that are directly affected by the pandemic. Start-ups will also be supported. This will allow companies to repay arrears and secure payments to financial institutions. Companies with a good credit rating and collateral of up to 100% will be able to take advantage of the lowest interest rate.
We finance working capital needed to pay overheads, refinance debts , funds for refreshment and renewal “, commented the executive director of BDB Vladimir Georgiev.
The standard sizes of credit lines are up to BGN 500 thousand for companies with staff up to 49 people (or 20% of net sales revenues for 2019) and BGN 750 thousand for companies with staff from 50 to 249 people (15% of net sales revenues for 2019). The maximum amount of an overdraft loan is BGN 250 thousand
Companies overdue for up to 90 days (up to 5% of the total portfolio) and up to 60 days (up to 45% of the total) will also have access to financing. portfolio) by refinancing their liabilities. Refinanced loans can be deferred for up to 2 years, easing the burden of their repayments.
The new program also offers an extended term for a standard working capital loan of 48 months. There is also a minimum requirement for security of the principal. The grace period is 18 months for hoteliers and 12 months for restaurateurs.