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EBRD invests in Bulgarian private sector bank
The European Bank for Reconstruction and Development (EBRD) will participate in a private sector investment bank, to be known as the Bulgarian Investment Bank A.D., through an equity investment of US$ 1.6 million which was formally approved yesterday by the Bulgarian National Bank.
Ron Freeman, First Vice President of the EBRD, said: "This start-up investment bank will inject project finance, corporate finance and restructuring skills into the Bulgarian economy. The Investment Bank will provide much-needed long-term capital to small and medium-sized companies, and contribute significantly to the development of the private sector in Bulgaria".
The Bulgarian Investment Bank will provide corporate finance advisory services and medium and long-term foreign currency loans to small and medium-sized private sector companies, and to companies undergoing privatisation, as well as to joint-venture companies.
In addition to the EBRD, founding shareholders of the Bulgarian Investment Bank include: Banque Nationale de Paris, Balkanbank, Hebrosbank, Sofiabank, United Bulgarian Bank and Touristsportbank. Start-up technical assistance is being provided by the European Union's PHARE programme.
The Bulgarian Investment Bank has an initial capital of Leva 200 million. During the first two years of operation, experienced expatriate bankers will be seconded to fill senior management posts and train local management. Dr Johan C Enters will serve as an Executive Director and as Chief Executive Officer.
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