Hungarian Eximbank and Bulgarian Development Bank ageree on EUR 10m credit line

Hungarian Eximbank and the Bulgarian Development Bank agreed about a EUR 10 million credit line to Bulgarian business, the representatives of the two banks announced.

The loans will be provided by the BDB and its subsidiary institution JOBS Microfinance Institution AD, which was created for funding Hungarian projects and import of Hungarian investment goods in Bulgaria. The minimum loan amount is EUR 50,000.

Funding will be provided for a period of 2 to 5 years and will cover up to 85% of the transaction value of the projects. The loans will be available on favorable terms, including the possibility of a fixed rate interest of 6% to 8%.

Customers of the BDB will have to pay a fee for the examination of the loan and a management fee for the first two years, profit.bg informs.

The credit lines will be granted for the purchase of goods from Hungary, with the exception of the following sectors: arms deals and unprocessed agricultural products.

According to preliminary data, Eximbank said that the sectors that will be of interest based on the queries of Hungarian exporters are: engineering, pharmaceuticals and products of woodworking.

In 2012, there there was an imbalance in the bilateral trade between Bulgaria an d Hungary: Bulgaria’s exports to Hungary rose by 10 % while the imports by only 2%.

Eximbank Hungary is 100% state owned and its bonds are guaranteed by the government.

Source: standartnews.com