Postbank has signed a guarantee agreement with the Fund Manager of Financial Instruments in Bulgaria (Fund of Funds), which will allow the bank to support the liquidity needs and projects of micro, small and medium enterprises affected by the pandemic. The new instrument called “Loss-capped portfolio guarantee to overcome the effects of the COVID-19 crisis” is funded by the OP “Innovation and Competitiveness” 2014 – 2020.
The inclusion in the program will enable Postbank to provide even more anti-crisis solutions to its business clients, facilitating their access to financing in order to overcome the negative effects of the current economic situation in the Bulgaria.
The agreement will allow Postbank to grant loans for a total of BGN 137 million at preferential interest rates and relaxed collateral requirements, as under the program the Fund will be guaranteeing up to 80 percent at the individual loan level and up to 25 percent at the portfolio level.
Companies can count on support in two areas: investment loans with a grace period of up to 24 months and working capital loans with a grace period of up to 12 months, including loans to overcome financial difficulties due to or aggravated by the COVID-19 epidemic. The investment loans will have a term of 12 to 120 months, working capital loans up to 60 months, and there is no limit on the amount of the allocated funds, subject to the provisions on state aid applicable under the agreement, at the level of the group of related parties.
“The inclusion of Postbank in the Fund of Fund’s anti-crisis program is part of our overall policy in support of small and medium enterprises in Bulgaria, and this is another tool that we will actively use to offer our business customers preferential lending terms. With this, Postbank once again proves its readiness to provide the best and most effective financial solutions to its customers, supporting them in the complex situation they face during the pandemic,” the financial institution commented.
Postbank is an active participant in the anti-crisis programs of the Bulgarian Development Bank, as well as a partner in the JEREMIE and COSME guarantee mechanisms, managed by the European Investment Fund. You can learn more about the available business products at www.postbank.bg.