EIF and Raiffeisenbank sign €85 million guarantee agreement to support SMEs during COVID-19 pandemic

The European Investment Fund (EIF) and Raiffeisenbank (Bulgaria) EAD have signed a guarantee agreement of €85 million to support small and medium-sized enterprises (SMEs) and small mid-caps in Bulgaria. The guarantee is backed by the European Guarantee Fund.

Under the agreement, companies will be able to access financing, backed by a 70% guarantee provided by the EIF on each new loan up to a maximum amount of €7.5 million per loan until 31 December 2021.

Alain Godard, EIF chief executive, stated: “The COVID-19 pandemic has severe consequences for SMEs across the European Union. The EIB Group and the EU Member States have set up the European Guarantee Fund to mitigate the economic impact on these SMEs and help them to continue their growth and development in the medium to long-term. The first EGF operation in Bulgaria will provide SMEs and small mid-caps with much-needed financing under more favourable conditions. We are happy to continue our long-standing partnership with Raiffeisenbank to support the Bulgarian economy during these difficult times.”

Oliver Rögl, CEO of Raiffeisenbank (Bulgaria), said: “Thanks to our excellent cooperation with the EIF, since the start of the COVID-19 pandemic we have agreed to unlock more than €380 million of fresh capital to support Bulgarian SMEs facing the negative economic effects of the pandemic. Raiffeisenbank is providing a wide range of financial products on more favourable terms.”