The Fund of Funds (FoF) signed a Funding Agreement with the Managing Authority of the Maritime, Fisheries and Aquaculture Programme 2021–2027 (MFAP).
The event was attended by the Deputy Minister of Agriculture and Food and head of the Managing Authority Stefan Burdzhev, the Executive Directors of the Fund of Funds — Alexander Nenkov and Biser Petkov and experts.
Enterprises, operating in the fisheries sector will gain access to loans under preferential conditions, financed through the Fund of Funds. For this purpose, the MFAP — co-financed by the European Union through the European Maritime, Fisheries and Aquaculture Fund ,provides nearly EUR 6.5 million.
The debt instrument, which is to be structured in the form of loans and guarantees, aims to facilitate access to financing for enterprises in the sector by offering preferential lending terms, including lower interest rates, reduced collateral requirements, and extended grace periods. The guarantee product will cover up to 80% of each loan granted by a financial intermediary bank, with a maximum guarantee amount of EUR 500,000. Risk-sharing loans may be provided both for investment purposes (up to EUR 500,000) and for working capital (up to EUR 150,000).
Financing will be available for investments in aquaculture, fish and fish product processing, specialised equipment for fishing vessels, activities aimed at improving the infrastructure of fishing ports and fish markets. Funds may also be used to support project proposals under Community-led Local Development strategies and the diversification of activities within the local blue economy, focused on improving the economic and social well-being of fishing communities.
Eligible final recipients include micro, small and medium-sized enterprises; large enterprises (eligible only for support through financial instruments, without combination with grants); registered small-scale coastal fishers; fisheries organisations and enterprises in the fisheries sector; municipalities, public institutions, and others.
In addition to the resources provided under the MFAP, the Fund of Funds will attract additional private financing, bringing the total financial resource available to final recipients to nearly EUR 8.7 million.
Market consultations on the instrument are forthcoming, with the aim of gathering feedback from interested stakeholders regarding their needs and priorities, as well as ensuring the optimal structure and the effective implementation of the financial products.
