site.btaBulgarian Development Bank, DSK Bank Sign Agreement to Provide Guarantees Under InvestEU Programme

The Bulgarian Development Bank (BDB) and DSK Bank have signed an agreement to provide guarantees under the InvestEU programme, securing over EUR 300 million of new financing for Bulgarian businesses to support their competitiveness, digital transformation, modernization and employment growth. The document was signed by BDB Executive Director Tsanko Arabadzhiev and DSK Bank Executive Directors Boyan Stefov and Slaveyko Slaveykov, the BDB said in a press release on Tuesday.

The BDB's support is divided into two InvestEU areas: "Member State" and "EU". The financial product is aimed at micro, small and medium-sized enterprises as well as those with a market capitalization of up to 499 employees, which require funding to expand their activities, implement innovations or increase productivity. InvestEU is the European Union's main investment instrument for the period 2021–2027. It aims to mobilize more public and private resources in support of a sustainable economy, small businesses, and innovative projects. The BDB is one of 17 implementing partners accredited to manage European funds and budgetary instruments. 

According to the DSK Executive Directors, the partnership between their bank and the BDB will give small and medium-sized companies easier access to financing, with two-thirds of the funding allocated to businesses outside major cities to promote regional development.

The Executive Director of BDB noted that improving access to finance is one of the company's top priorities. According to him, the InvestEU programme, will create an effective mechanism that shares risk with commercial banks and enables them to support more ambitious investment projects.