What we do
Institutional investors
Equity products
AI Co-Investment Facility
Cleantech Co-Investment Facility
Impact investing at the EIF
Climate & Infrastructure Funds
Technology Transfer
European Angels Fund (EAF) - Co-investments with Business Angels
Venture capital
The Social Impact Accelerator (SIA)
Lower mid-market
Mezzanine Facility for Growth
EFSI Equity instrument
Single EU Equity Financial Instrument
COSME - Equity Facility for Growth
InnovFin Equity
Private equity secondary market transactions
EIF-NPI Equity Platform
ESCALAR Programme
Debt products
New ESIF ERDF Guarantee Fund initiative in Greece
EFSI Private Credit Programme
AGRI Guarantee Facility
AGRI Italy Platform Uncapped Guarantee Instrument
Credit enhancement
Cultural and Creative Sectors Guarantee Facility (CCS GF)
ENSI - Securitisation Initiative
Erasmus+ Master Loan Guarantee Facility
Skills & Education Guarantee Pilot
EREM debt products
Single EU Debt Financial Instrument
Documentary Finance Facility – Bulgaria
The SME Initiative
The SME Initiative Bulgaria
The SME Initiative Finland
The SME Initiative Italy
The SME Initiative Malta
The SME Initiative Romania
The SME Initiative Spain
Inclusive finance
EaSI Financial Instruments
EaSI Capacity Building Investments Window
EaSI Guarantee Instrument
EaSI Funded Instrument
European Progress Microfinance Facility
Entrepreneurs supported through Progress Microfinance
European Fund for Strategic Investments (EFSI)
How does EIF contribute to EFSI
How to apply for EFSI financing
Regional Development - Country and sector-specific initiatives
Normandie Garantie Agri
FAIRE - La Réunion
Auvergne Rhône-Alpes FEADER
Recovery Equity Fund of Funds of Bulgaria
Fons d’Inversió en Tecnologia Avançada (FITA) Catalonia
Dutch Future Fund (DFF)
Dutch Alternative Credit Instrument (DACI)
PORTUGAL BLUE: a new initiative for blue economy investments
JEREMIE Greece Reflows – Business Angels’ Co-Investment Equity Instrument
German Corona Matching Facility (CMF)
Portugal Growth programme
Central and Eastern European Technology Transfer (CEETT)
Croatian Growth Investment Programme (CROGIP) II
Croatian Growth Investment Programme (CROGIP)
Croatian Venture Capital Initiative 2 (CVCi 2)
AGRI Italy Platform Uncapped Guarantee Instrument
ALTER’NA – ESIF EARFD Nouvelle-Aquitaine
Baltic Innovation Fund 1 (BIF 1)
Baltic Innovation Fund 2 (BIF 2)
Central Europe Fund of Funds (CEFoF)
Croatian Venture Capital Initiative (CVCi FoF)
Competitiveness Fund-of-Funds for SMEs in Romania
The Cyprus Entrepreneurship Fund (CYPEF)
Deep and Comprehensive Free Trade Area Initiative East Guarantee Facility (DCFTA)
EU4Business Capped Guarantee
Dutch Growth Co-Investment Programme
Dutch Venture Initiative (DVI-II)
ESIF Fund-of-Funds Greece
EAFRD FoF Portugal
EAFRD FoF Romania
The ERP-EIF Facility
ERP-EIF Co-Investment Growth Facility
The LfA-EIF Facilities
The German Future Fund (GFF) - EIF Growth Facility
INAF – French National Agricultural Initiative
ESIF Energy Efficiency and Renewable Energy Malta
Regional Fund-of-Funds Romania
ESIF Fund-of-Funds Czech Republic
The Silesia EIF Fund of Funds
La Financière Région Réunion
The EIB Group Risk Enhancement Mandate (EREM)
Call for Expression of Interest for FOSTER II
Greater Anatolia Guarantee Facility (GAGF)
G43 - Anatolian Venture Capital Fund Project
InvestBG Equity Instrument
Romania Recovery Equity Fund of Funds
JEREMIE Romania Reflows – Equity Instrument
Luxembourg Future Fund 1 (LFF)
Luxembourg Future Fund 2
Mezzanine 'Fund of Fund' for Germany (MDD)
NEOTEC resources
Polish Growth Fund of Funds (PGFF)
Portugal Venture Capital Initiative (PVCi)
Scottish-European Growth Co-Investment Programme
Slovene Equity Growth Investment Programme (SEGIP)
Swedish Venture Initiative (SVI)
Turkish Growth and Innovation Fund (TGIF)
Western Balkans Enterprise Development & Innovation Facility (WB EDIF)
EAFRD FoF Greece
Irish Innovation Seed Fund (IISF)
RRF Czech Republic Fund of Funds

EIF launches credit guarantees with leading Bulgarian banks for €2 billion of small business lending

    Date: 30 January 2024
  • European Investment Fund signs guarantee agreements with four banks to steer up to €2 billion in financing for green transition and sustainable growth of Bulgarian businesses
  • A novel financial instrument under Bulgaria’s Recovery and Resilience Plan supports adoption of climate action investment in the country

The European Investment Fund (EIF), part of the European Investment Bank Group (EIB Group), has signed guarantee agreements with four Bulgarian banks that will facilitate up to €2 billion in financing to underpin the sustainable growth and competitiveness of small and medium enterprises and contribute to the green transformation of the Bulgarian economy.

The series of capped portfolio guarantees is backed by the InvestEU Member State Compartment for Bulgaria. The deal is also making use of resources under Bulgaria’s Recovery and Resilience Plan (RRP). EIF guarantees will free up lending space for commercial banks in the country, allowing them to extend more financing to businesses under favourable terms.

The EIF will extend the guarantees to Postbank (Eurobank Bulgaria), ProCredit Bank Bulgaria, UniCredit Bulbank and United Bulgarian Bank, leading lenders in the country and long-term partners of the EIB Group. The guarantee operations mark the effective launch of two financial instruments, each with a budget of €75 million under the Recovery and Resilience Plan in Bulgaria.

The Republic of Bulgaria, represented by the Bulgarian Ministry of Innovation and Growth, has entrusted the EIF as an implementing partner for the two portfolio guarantee instruments in its Recovery and Resilience Plan. The capped guarantees would be financed by the Recovery and Resilience Facility. The instruments are an important tool to advance Bulgarian businesses' competitiveness, boost economic growth and foster a greener future.

Minister of Innovation and Growth Milena Stoycheva said: “The partnership with the European Investment Fund underlines our commitment to enhancing the economic landscape of Bulgaria. Since the inception of the JEREMIE mandate in 2009, this collaboration has been a cornerstone in transforming our economy. We see the financial instruments under the Recovery and Resilience Plan as the next chapter in this success story. Through these guarantees, we are not only fostering the adoption of climate action investments but also strengthening the resilience and competitiveness of our small and medium enterprises. These efforts signify a pivotal step towards a sustainable and prosperous future for Bulgaria.”

Under the SME Competitiveness Guarantee the banks will provide loans on preferential terms to small and medium enterprises to help strengthen their resilience and increase their productivity amid economic uncertainty. The Sustainability Guarantee will target investments in climate action, energy efficiency and renewable energy by small and medium businesses and housing associations in support of the transition to the green economy.

EIF Chief Executive Marjut Falkstedt said: “Thanks to the excellent cooperation with the Bulgarian authorities and our partner banks in the country, the EIF has been able to deploy the financing from these guarantee instruments in record time. Today’s agreements will empower small and medium businesses to expand and modernise their operations, contributing towards a greener future.”

In November, the EIF successfully launched another financial instrument it manages under the Smart Industry component of Bulgaria’s RRP – the €180 million Recovery Equity Fund of Funds of Bulgaria, aimed at providing equity financing for innovation, infrastructure and growth of Bulgarian businesses.

Background information

The EIF is part of the EIB Group together with the European Investment Bank. It supports Europe’s small businesses by improving their access to finance through a wide range of selected financial intermediaries such as banks, guarantee and leasing companies, micro-credit providers and private equity funds. The EIF designs and offers equity and debt financing instruments fostering EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.

About the InvestEU Member State Compartment

The InvestEU Member State Compartment enables the Member States to contribute part of their shared management funds, resources from the Recovery and Resilience Facility, and national resources to the InvestEU Fund by setting up a dedicated Member State Compartment. With this voluntary contribution, Member States can leverage on the InvestEU guarantee to support specific national priorities. Under the Member State Compartment, loans, guarantees or equity investments can be offered as a complement to other public and private investments.

Press contacts:

EIB: Tsvetelia Tsolova, t.tsolova@ext.eib.org, tel.: +359 888 311 435

Website: www.eib.org/press — Press Office: press@eib.org

MIG: Dessislava Koleva, press@mig.government.bg,

Website: www.mig.government.bg

Note: Following the recent withdrawal of the United Kingdom from the European Union, we are updating the relevant EIF.org pages.


Copyright ©

 European Investment Fund   – The European Investment Fund is not responsible for the content of external internet sites.