The EBRD program for guarantee agreements under the “InvestEU” scheme of the EC has started in Sofia

SOFIA – The European Bank for Reconstruction and Development (EBRD) has launched its program for guarantee agreements aimed at the financial sector in Bulgaria, under the “InvestEU” scheme of the European Commission. The official start was given during an event at the “Intercontinental” hotel in Sofia.

The “InvestEU” program aims to attract public and private funds to support sustainable recovery and growth in the countries of the European Union. The total amount of funds under it amounts to 26.2 billion euros, with the help of several partners, these funds are distributed in the form of guarantee agreements. The EBRD is the second largest partner of the EC in this program, with two Bulgarian banks – “Post Bank” and “ProCredit Bank Bulgaria” already partnering with the EBRD, receiving guarantees under the “InvestEU” scheme.

According to Francis Malige, Managing Director for Financial Institutions at the EBRD, although Bulgaria is making progress in reducing the energy intensity of its economy, the country remains at the bottom in the EU in terms of carbon efficiency. To overcome this challenge, attracting financing is necessary. He gave an example that only for the renovation of the building stock in Bulgaria, financing of 13 billion euros is needed.

According to Malige, the focus of the program for Bulgaria is on small and medium-sized enterprises, the corporate sector, the construction sector, and the expansion of renewable energy. Francis Malige pointed out that there are no predetermined amounts allocated for each country and urged financial institutions to take full advantage of the funds as quickly as possible before they are exhausted.

Last week, the Board of Directors of the EBRD approved a new strategy for Bulgaria, which will guide the bank’s investment and political commitment in the country for the five years leading up to 2030. “The three main themes of our commitment in Bulgaria over the next five years, which are also priorities for the government, are accelerating the transition to a green economy, enhancing competitiveness through innovation, and deepening financial markets, as well as strengthening economic resilience and regional integration,” said Manuela Nessel, head of the EBRD for Bulgaria.

The new strategy is closely aligned with Bulgaria’s national priorities and commitments to the EU. In 2024, EBRD investments in Bulgaria will reach 272 million euros compared to 114 million euros in the previous year, within the framework of 20 projects. Over 90 percent of these investments were allocated for Bulgaria’s green transition, the bank reported. (June 10)