Bulgarian Fund of Funds seeks monetary intermediaries to supply loans in rural areas

SOFIA (Bulgaria), February 19 (SeeNews) – The Fund of Funds (FoF) in Bulgaria, which manages 4 EU operational packages, mentioned it has launched a process for choosing monetary intermediaries to handle a mortgage instrument within the rural areas which is funded beneath the EU Operational Program for Rural Growth 2014-2020.

The monetary instrument has a finances of 38.3 million levs (23.7 million {dollars} / 19.6 million euros) divided into three tons, however potential intermediaries ought to complement public sources with non-public capital. , bringing the full loanable funds to greater than 60 million levs, the FoF mentioned in an announcement launched earlier this week.

As soon as the choice course of for middleman enterprises is accomplished, low curiosity loans will probably be made out there to agricultural producers and different enterprises in rural areas. The deadline for submitting purposes for the choice course of is March 22, the fund added.

The FoF will co-finance two forms of low-interest loans – top-up of beforehand awarded venture grants, with FoF contributing 50% of the mortgage quantity, or stand-alone loans, with the fund taking part as much as 70%.

Native farmers will be capable of borrow as much as 2 million levs, whereas entry to loans on extra favorable phrases will even be open to companies concerned in non-farm enterprise actions in rural areas, together with manufacturing, buying and selling. , crafts and providers reminiscent of accounting. , utility and repairs. Companies can use the cash for each funding and dealing capital, the FoF mentioned.

Preferential phrases will embody decrease than market rates of interest, relaxed demand necessities, and decrease surety necessities. The allotted funds are anticipated to supply help to at the very least 130 entities, the fund additionally mentioned.

FoF’s fundamental exercise is the structuring and administration of monetary devices co-financed by the European Structural and Funding Funds through the 2014-2020 programming interval.

(1 euro = 1.95583 levs)

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