Project description
and objectives:
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This DEM 40 million facility will provide credit lines to local banks to extend loans to local small and medium- sized enterprises (SME) in the tourism and associated sectors. A €5.1 million loan has been extended to the first participating bank under the facility, the Bulgarian American Credit Bank (BACB). The size of the sub-projects will be between DEM 0.2 and 2 million.
The Project will aim to provide long-term financing to the Bulgarian SMEs. A substantial proportion of the funds are expected to be disbursed to companies operating in the tourism sector.
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Transition impact:
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SMEs play an important role in promoting private sector development and driving growth in transition economies. A critical obstacle in the development of the tourism sector in Bulgaria has been the limited access to long-term financing. The facility will act as a model for other businesses in supporting post-privatisation restructuring and encouraging private ownership.
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The client:
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The facility will be extended to selected Bulgarian banks. The first participating bank under the facility is the Bulgarian American Credit Bank, a Bulgarian bank, wholly owned by the Bulgarian American Enterprise Fund (BAEF). Since 1992 the BAEF and BACB have been amongst the very few sources of long-term finance to SMEs in Bulgaria.
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EBRD finance:
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The first loan provided under the facility is a €5.1 million senior loan with seven-year maturity.
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Total project cost:
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DEM 40 million for the Facility.
€5.1 million for the Loan to BACB.
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Environmental impact:
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The participating banks will follow the EBRD's Environmental Procedures for Local Banks in relation to all sub-loans financed through the credit line. In implementing these procedures, the banks will assess potential environmental issues associated with sub-projects, which are required to comply with local/national health, safety, environmental and public consultation requirements and with World Bank environmental guidelines applicable to the tourism sector.
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Technical
cooperation:
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€70,500 was approved for carrying out a market study of the Bulgarian tourism sector.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Anelia Kasterlieva, Operation Leader: kasterla@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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