The Fund of Funds (FoF) is currently preparing to launch a new loan instrument intended for small businesses. The preparatory stage involves conducting market consultations aiming to ensure that the product is structured in an optimal way. Making use of the possibilities to provide risk-sharing financing and having determined the parameters of the new financial instrument, the Fund of Funds intends to identify current market needs as well as potential financial intermediaries.
Financing has been provided under Operational Programme Innovation and Competitiveness 2014—2020 (OPIC), co-financed by the European Structural and Investment Funds. The call will fully comply with the requirements of OPIC and will further be aligned with the specific needs of the target group. The implementation of the instrument will ease the difficulties encountered by enterprises seeking affordable loans linked to the level of risk estimated by banks. This will improve the access of companies to external lending upon favourable terms.
The total budget of the instrument is BGN 29 million. It will enable the disbursement of a new loan portfolio with a total amount of BGN 41 million, with up to 70 % of each loan financed by the Fund of Funds. The precise parameters of the loans are yet to be determined, taking into account the outcome of the market consultation conducted. The loans will support the purchase of machinery, equipment, motor vehicles, lease agreements, working capital, etc.
The consultations will be held from 21 November up to and including 12 December 2019 and interested stakeholders are invited to express interest in participating by calling (+359 2) 801 4050 or sending an e-mail to office@fmfib.bg
After the end of the consultation period, a summary report of the results will be drawn up and published on the website of the Fund of Funds.
