‘The 2007-2013 programming period set businesses on a learning curve in terms of financial instruments by providing opportunities to learn how to raise that type of financing. Project sponsors discovered the appropriate communication modalities and gained an insight into financial matters. In the current 2014-2020 programming period, it the time is ripe for an increase in the number of projects. We, too, should be prepared so that we can meet the demands of the market by offering financial instruments in sufficient amounts. The competition among the financial instruments on offer will have a positive effect on the national economy’, said Valeri Belchev, Executive Director of Fund Manager of Financial Instruments in Bulgaria EAD (FMFIB). He took part in Financial Engineering and SMEs Financing, a conference from the series of events on ‘Competitiveness of the Bulgarian Economy’ hosted by the Economic Policy Institute. The conference discussed the role of financial engineering and opportunities for SMEs financing.
‘The FMFIB has had the opportunity to discuss a range of financial instruments with market players. We managed to get a sense of the market interest in the various instruments, and a sense of the competition. That gives us the confidence to procede with launching selection procedures for financial intermediaries very soon and enable the business to benefit from the new Funds’, Valeri Belchev said.
He presented the financial instruments to be placed on the market by the FMFIB, and the opportunities for SMEs to gain access to those financial resources. ‘SMEs will have access to financing via market-oriented mechanisms such as loans, guarantees, equity investments, etc. At the same time, additional resources and expertise will be mobilised from the private sector’, Mr. Belchev noted.
Financial engineering affords a way to work with money in a way that leverages the effect and impact of the investment we make. The Funds provide opportunities to finance new projects. Also, it is possible to combine grants with financial instruments. This is a more efficient and sustainable alternative to complement traditional financing from grant schemes. In addition, the FMFIB has allocated some financing for guarantees that would increase the banks’ risk appetite. It is expected that many innovative and interesting projects will appear on the market, Valeri Belchev told the conference.
