In the Aula of Sofia University "St. Kliment Ohridski" an event was held on the 20th of May, 2014, where the results achieved and the effects of the implementation of the financial instruments managed by the Fund of Funds (FMFIB) in the programming period 2014-2020 were presented. The event was attended by representatives of managing authorities of operational programmes, financial intermediaries and other stakeholders and partners. The event was opened by Krassimir Yakimov - Deputy Minister for Innovation and Growth. Welcoming remarks were also made by Yordanka Chobanova - Head of the Representation of the European Commission in Bulgaria, Stoyan Shishkov - Vice Rector of Sofia University, and Nikolay Genchev - Chairman of the Supervisory Board of the Fund of Funds. Mr. Genchev thanked the Managing Authorities, who gave mandates, and the financial intermediaries for their efforts in important projects and sectors. The event continued with presentations by Biser Petkov, Victoria Hristova and Pavel Lisev, Executive Directors and Board Members of the Fund of Funds.
Biser Petkov presented data on the results achieved, stressing that more than 3550 final beneficiaries from different sectors have been supported and about BGN 2 billion of public and private resources have been invested. The support provided promotes economic, regional and social cohesion in the country. In addition, it was noted that the private companies supported by FMFIB are important for the country's economy, as according to the NSI, they have generated net sales revenues of BGN 14.4 billion and employ over 48 thousand people.
Emphasis was also laid on the macroeconomic effects of the financial instruments implemented by FMFIB. Based on the CIBILA 2.0 model, the Council of Ministers measured the cumulative effect from 2019 to the end of 2023 on the following macroeconomic indicators:
- Bulgaria's GDP increases by 2.8% relative to a scenario without financial instruments;
- Increase in employment (15-64 years) by 5.4% compared to the scenario without financial instruments;
- Increase in private investment by 7.6% compared to the No-FIs scenario.
In addition to these short-term effects, med- and long-term benefits are also expected. Victoria Hristova presented the effects of the different FIs/operational programmes.
The provision of nearly BGN 300 million from OPIC 2014-2020 under the Recovery Programme Guarantee Facility played a key role in a situation of high uncertainty and reduced risk appetite of the country's banks due to COVID-19, which allowed lending for about BGN 784 million. Based on BNB data, it is estimated that around 10% of the new lending volume of up to €1 million to enterprises in the country in 2021-2023 was guaranteed with resources under the Programme.
Regarding the private equity instruments under the Operational Programme "Innovation and Competitiveness 2014-2021" (OPIC), again the Fund of Funds has a key role in the market, as 3 out of 5 of the enterprises that received private equity financing in 2019-2023 were financed by funds supported by the Fund of Funds, with the invested public and private resources amounting to nearly BGN 300 million. Over 1,000 new jobs have been created due to the investments made in the supported enterprises. Concerning the Operational Programme "Regions in Growth 2014-2020" (OPGR) and the public and private resources of nearly BGN 580 million provided, emphasis was placed on the fact that the Urban Development Funds are a key partner of municipal administrations for the implementation of urban investment projects, as the share of the resources invested byFMFIB concerning the capital expenditures of the supported municipalities for the period 2020-2023 is on average 10%, with some municipalities such as Varna, Burgas and Gabrovo reaching the substantial share of nearly 30% - a clear indication of the transformative impact that FIs have on the development of cities and regions. The results achieved by the JESSICA recycled investments were also presented.
It was also noted that more than 960 microcredits for nearly BGN 35 million were provided to start-ups, including social enterprises, with resources under the Operational Programme for Human Resources Development 2014-2020 (OPHRD), as a significant part of the supported beneficiaries are representatives of the target groups of the Programme (young people up to 29 years and/or unemployed). Nearly 1 500 people were employed as a result of the micro-credits provided. Under the Operational Programme "Environment 2014-2020" (OPE 2014-2020), it was noted that about BGN 45 million have been invested in 5 water and sewerage operators in the country (Burgas, Ruse, Vratsa, Stara Zagora and Smolyan). In the long term, these investments in water and sewerage infrastructure will contribute to improving the quality of life in these cities and more efficient use of resources.
Pavel Lisev presented challenges and lessons learned from the past programming period and FMFIB's plans for continued investment support in 2021-2027. Funds from the new Multiannual Framework will be strategically allocated to several key areas to support business, innovation, and regional cohesion in Bulgaria. Within the Competitiveness and Innovation in Enterprise Programme 2021-2027, where the resource earmarked for financial instruments exceeds €645 million, the funds are divided to support two main areas - "Innovation and Growth" and "Circular Economy". The Development of Regions 2021-2027 Programme will finance projects in several priority sectors - urban environment, education and health infrastructure, urban mobility, cultural tourism, and sports. Currently, FMFIB is in active negotiations to finalize the signing of funding agreements with the managing authorities of other programmes in the 2021-2027 programming period.
