Bulgaria: EIB boosts infrastructure and small companies

During an official ΕIB visit to Sofia, a loan of EUR 43.5 million for urban road transport in the Bulgarian capital was signed in the presence of Bulgarian Prime Minister Boyko Borissov by Ms Marta Gajęcka, EIB Vice-President responsible for lending in Central Europe as well as Bulgaria, and the acting Mayor of Sofia, Mr Minko Guerdjikov.  Prime Minister Boyko Borissov, as former Mayor of Sofia, had initiated this project.

Ms Gajęcka also signed with the Bulgarian Deputy Prime Minister and Minister of Finance Mr Simeon Djankov a Memorandum of Understanding that will facilitate the implementation of large infrastructure projects in Bulgaria. The Memorandum provides for technical assistance from the European Investment Bank in order to enhance the monitoring and implementation of certain major transport and environmental projects in the country co-financed with European Union grant funds and EIB loans.

On this occasion the European Investment Bank also signed a EUR 50 million facility with Eurobank EFG Bulgaria, for funding small and medium-sized companies in the country.  

Ms Gajęcka commented: “I am particularly happy to see a boost being given in Bulgaria to our activity focusing on the well-being of the citizens. This is achieved through infrastructure that improves the quality of life and through the small and medium-sized companies that employ most of the people in the country. Our support takes the form not only of lending, but also of providing expertise and assistance to streamline the implementation of complicated key projects, supported equally by the Government, the EIB and the Commission.  I am pleased to see urban transport for the Bulgarian capital high on the agenda. After our EUR 105 million support for the Sofia metro last year, our efforts are now focused on urban road transport. The EIB facility in partnership with Eurobank EFG Bulgaria will offer greater scope for meeting the liquidity needs of local companies in this unprecedented international economic crisis that we are facing”.

Background information:

The remit of the EIB, the European Union’s bank promoting European objectives, is to contribute to the integration, balanced development and economic and social cohesion of the Member States.

In the last five years since 2004 the EIB has provided loans in Bulgaria totalling some EUR 1.8 billion including the current loans. EIB operations now cover all of the country’s key economic sectors, ranging from basic infrastructure to manufacturing and services and including support for small and medium-sized companies as well as municipalities. EUR 700 million of this amount was for co-financing Bulgaria’s national contribution to the implementation of investment priorities and measures with EU Cohesion and Structural Funds during the period 2007-2013.

EIB activities in Bulgaria are focused on the following objectives:

• Improving and upgrading the country's basic infrastructure in areas such as transport, environment and energy in combination, where applicable, with EU grants and other funding sources. This includes financing at national but also regional and municipal levels;
• Promoting and strengthening economic growth and development through a combination of EU grants and government and private funds;
• Supporting private sector investment, including long-term foreign investment activity;
• Closely cooperating in the implementation of projects financed by the Bank; providing technical support and expertise for selected EU Cohesion and Structural Fund projects defined in the JASPERS National Action Plan;
• Assisting the government in the implementation of a national PPP programme.