National Guarantee Fund and UniCredit Bulbank sign a Guarantee Agreement to support small and medium-sized enterprises

The National Guarantee Fund (NGF), part of the Bulgarian Development Bank group, and UniCredit Bulbank signed a guarantee agreement to support micro, small and medium enterprises in the country, the bank said on 9 February.

The agreement provides an opportunity to guarantee a portfolio of investment and working credits in the amount of over BGN 200 million.

The guarantee scheme aims to facilitate companies' access to a credit resource by significantly reducing collateral requirements. The guarantee from the NGF will cover up to 50% of the amount of the newly granted investment and working credits, supplementing or replacing the collateral for them.

Financing will be available to both existing enterprises to expand their activities, as well as start-up companies and companies with a short business history.
The loans will be granted in BGN and EUR currency, and the deadline for their inclusion in the guaranteed portfolio is June 30, 2025.

With the help of the guarantee scheme, UniCredit Bulbank will support the development and implementation of projects co-financed under the operational programmes of the European Union. The agreement also encourages the construction of own renewable energy sources for business needs, thereby supporting the country's transition to a climate-neutral economy, the announcement states.

This is the 11th agreement between UniCredit Bulbank and the National Guarantee Fund. The partnership between the two institutions dates back to 2010. To date, more than 2,600 Bulgarian companies have been supported in the start or development of their business.