The European Investment Fund (EIF) and Ustoi JSC have signed a senior loan agreement aimed at supporting more than 500 micro-enterprises in Bulgaria PV. by providing more than 500 loans under EPMF for the period of 2 years.

This agreement will allow Ustoi JSC to provide enhanced access to finance to entrepreneurs in Bulgaria, especially farmers, female entrepreneurs and minority groups who face difficulties in accessing credit from traditional banking sources.

Progress Microfinance is funded by the European Commission and managed by the European Investment Fund.

Commenting on the agreement, Head of Microfinance Per-Erik Eriksson said: “We pleased to be signing this significant agreement in Bulgaria which is targeting communities who struggle to access financing. This agreement should help to enhance access to finance for those micro-entrepreneurs who need finance the most”.

The transaction will allow Ustoi JSC, to continue further developing its current lending activity to the smallest viable businesses in Bulgaria. Ustoi JSC is the only player in the Bulgarian market that still uses the group lending methodology. This method focuses on providing financial services to informal businesses, as well as to the mobile businesses of ethnic minorities (especially for the Roma community).

CEO of Ustoi JSC Pavel Velev said: “We consider this agreement as a very important step for Ustoi JSC in provision of much needed financial support to micro businesses from all sectors and ethnicity groups in Bulgaria. Ustoi JSC will be able to outreach further in rural places and assist small farmers to increase productivity, implement new equipment and technology. We expect increased social impact and sustained employment in the micro businesses funded under EPMF”.”

Micro-enterprises wishing to apply for a micro-loan under Progress Microfinance can directly contact Ustoi JSC’s branches.

About the European Progress Microfinance Facility

The European Progress Microfinance Facility (Progress Microfinance) provides guarantees and funded instruments to microfinance intermediaries. The initiative is established with EUR 205 million of funding from the European Commission and the European Investment Bank. Progress Microfinance aims to increase access to finance for micro-entrepreneurs, including the self-employed. It has a particular focus on, but is not restricted to, groups with limited access to the conventional credit market. Examples include female entrepreneurs, young entrepreneurs, entrepreneurs belonging to a minority group, entrepreneurs with a disability, sole traders etc. Loans less than EUR 25,000 are made available through selected intermediaries participating in the facility. Progress Microfinance does not provide direct financing to micro-entrepreneurs or individuals.

Ustoi JSC marks the 62nd transaction signed under Progress Microfinance since its inception in 2010. To date, commitments of over EUR 130 million under Progress Microfinance have been signed to benefit EU micro-borrowers. Countries where agreements have been signed to date include Austria, Belgium, Bulgaria, Cyprus, Denmark, France, Greece, Ireland, Italy, Lithuania, Poland, Portugal, Romania, Slovenia, Slovakia, Spain, Sweden, The Netherlands and the UK.For further information about this initiative please visit: www.ec.europa.eu/epmf

About EIF

The European Investment Fund's (EIF) central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. EIF’s total net commitments to private equity funds amounted to over EUR 7.9bn at end 2013. With investments in over 435 funds, EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. EIF’s guarantees loan portfolio totalled over EUR 5.6bn in over 300 operations at end 2013, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

About Ustoi JSC

Ustoi JSC is the legal successor of the Ustoi microfinance program which has been launched in 1998. Ustoi JSC is a self-sustained - operationally and institutionally, micro-credit organization. The company is registered as a non-bank financial institution in Bulgaria. Ustoi JSC’s mission is to provide financial opportunities to the micro businesses in Bulgaria to be able to implement their projects at a cost-effective price, leading to income increase. Since 1999, Ustoi has extended more than 45,000 loans with a total amount of over EUR 33 million to both urban and rural clients. In the recent years Ustoi JSC focuses in provision quality financial services to rural farmers and implementing client protection and transparency principles in its activities. More information about Ustoi JSC is available on www.ustoi-businesscredit1.org

Press contacts:

EIF: David Yormesor, d.yormesor@eif.org

Ustoi JSC: Pavel Velev, pvelev@ustoi.org (+359 2 9804540) or visit www.ustoi-businesscredit1.org