The programme provides access to loans with eased conditions for SMEs
Postbank has signed an agreement with the Bulgarian Development Bank (BDB) to join its portfolio guarantee programme in support of micro, small and medium enterprises experiencing difficulties due to the Covid-19 pandemic.
The budget of the guarantee programme, part of the government’s anti-crisis measures, is BGN 500 million. Loan applicants and related companies will be eligible for up to BGN 300 thousand loans amounts under the programme, as the BDB will guarantee up to 80% of the granted loans. Interest rates will be adjusted to the economic situation in Bulgaria and loan applicants’ credit profile. Postbank will transfer a guarantee fee to the BDB in line with the European Commission’s approval. The fee will be collected by the bank and will be payable by loan holders for the BDB’s guarantee.
The programme is open to companies from all sectors, as companies mostly from the worst-hit ones – trade, services, transport and logistics, tourism, hotels and restaurants – are expected to apply. The goal is to maintain jobs and economic stability amid economic activity decline, closing companies, inter-company and public indebtedness.
The agreement enables Postbank to include both new and existing loans in the scope of the programme. For that purpose, companies must meet at least one of the following requirements:
- Turnover decline in Q1 2020, compared to Q1 2019;
- Non-collected receivables from clients, as well as outstanding payments to suppliers after 1 March 2020;
- Cancelled export contracts or stopped imported supplies since 1 January 2020;
- Cases of sickness and self-isolation of staff, an overall reduction in the number of employees, closed production facilities, premises and offices.
“Our business clients will be able to apply for loans with less strict collateral requirements – no more than 20% of the requested loan amount. We are also considering a grace period option. The fact that the measure is open to all sectors and will be applied across the Republic of Bulgaria is of utmost importance. We have always put excellent customer service at the core of our corporate philosophy and we strive to perfect our products every day in order for the other business organisations in Bulgaria to benefit from them. Our partnership with the Bulgarian Development Bank is a step with which we show that we firmly support our clients and their needs even in hard times, and that we actively support the measures aimed at tackling the Covid-19 pandemic fallout,” Postbank points out.
The clients of the financial institution will be able to opt among various financing schemes.
More information about Postbank’s business products is available at www.postbank.bg, in the bank’s specialized Small Business Banking Centres, Corporate Business Centres, as well as in the Corporate Banking department of Postbank Head Office.