Bulgaria: Major increase in EIB activity

At a press conference in Sofia today, the European Investment Bank (EIB) presented its 2014 results, with a focus on operations in Bulgaria and prospects for future activities in the country.

EIB Vice-President Mr László Baranyay commented: “2014 was an exceptional year for the EIB in Bulgaria. The Bank more than doubled its lending in the country, reaching a level of EUR 610 million in 2014. Our aim was to support priority projects receiving grants from the European Union, thus increasing Bulgaria’s absorption of EU funds. Looking ahead, we will continue to finance projects that improve the citizens’ quality of life, foster growth and job creation and increase the competitiveness of the Bulgarian economy.”

In 2014, the EIB granted a loan of EUR 500 million to co-finance priority projects backed by EU funds in Bulgaria over the 2014-2020 programming period. The EIB loan will fund the national co-financing contributions under the “Transport” (including urban transport) and “Environment” Operational Programmes, supporting projects with a total investment cost of more than EUR 4 billion.

The Bank also continued in 2014 to support smaller projects implemented by SMEs and midcap companies. It concluded intermediated loans with three partner financing institutions operating in Bulgaria for a total of EUR 110 million. This further improved the access of Bulgarian SMEs and municipalities to long-term financing, which has reached close to EUR 1.2 billion since the  EIB began lending in the country in 1990.

Through JASPERS (Joint Assistance to Support Projects in European Regions), technical assistance for EU grant applications has so far been provided to 80 projects in Bulgaria with an estimated total cost of some EUR 5.2 billion (until end-2014). Currently JASPERS supports 21 active projects in the country with an estimated total cost of around EUR 2.2 billion. Projects receiving support from JASPERS are primarily in the water and waste as well as in the rail and road sectors.

In 2014, the European Investment Fund (EIF), the EIB’s subsidiary, signed eight agreements with banks specialising in SME lending and two agreements with new equity funds in Bulgaria for a total of EUR 56 million, making EUR 140 million of new leveraged funding available to small businesses in the country. Through existing JEREMIE equity and debt operations and central mandates, the EIF provided EUR 190 million of financing to more than 1 600 Bulgarian enterprises.

In 2015, the EIB Group will continue to support growth and employment in Bulgaria with particular emphasis on the identification and financing of projects to be supported under the European Fund for Strategic Investments. The Bank will launch new financial instruments in priority areas, including for SMEs and the environment. Furthermore, it will support investments in energy efficiency and strategic energy infrastructure. In order to accelerate the absorption of EU Funds in Bulgaria, the EIB will co-finance priority investments under the 2014-2020 Programming Period, predominantly in the areas of sustainable transport, water and environmental protection. Finally, the Bank will contribute to improving the access of SMEs and midcap companies to affordable long-term finance.