Suitable financial instruments for you

Indicative budget

EUR 6.17 million

Objectives of the instrument

The main objective of the financial instrument is to stimulate lending to final recipients under the PMFA by providing loans and guarantees through selected financial intermediaries, thereby addressing sector-specific difficulties (lack of access to finance, high interest rates) and helping to overcome problems such as lack of collateral, high credit risk, etc.

The target final recipients (FR) are micro, small and medium enterprises, large enterprises, registered small-scale coastal fishermen, fishermen's organizations and enterprises in the sector, municipalities and other public institutions. A combination of FI and grant is envisaged in a single operation to provide technical support. Grant is provided directly to FRs or for the benefit of FRs for the costs of preparing the project proposal, activities to promote FI, measures to increase the capacity of FRs, training, etc.

Financial instruments could also be combined with grant funding received under the PMFA as part of two separate operations.

Source of public funding

Programme Maritime, Fisheries and Aquacultures 2021-2027

Current stage of the instrument

Structuring and preparation of tender pack

Indicative Budget of the Instrument

EUR 14.4 million

Implementation Mechanism

Financing with risk-sharing, provided through the Fund Manager of Financial Instruments in Bulgaria (FMFIB) using funds from the "Environment" Program (EP) 2021–2027. The aim is to partially share the risk associated with financing provided by financial intermediaries to eligible final recipients.

Objectives of the Instrument

Providing investment/working capital financing and/or financial leasing under favorable conditions to target final recipients for investments aimed at:

• Reducing the amount of municipal waste sent to landfills and increasing the share of separately collected and recycled waste, supporting the transition to a circular economy, including:
  • Measures for recycling municipal, industrial, and construction waste, carried out by recycling enterprises. This can include activities for the pre-treatment of separately collected waste and/or separate collection of waste destined for recycling.
  • Measures targeting municipal waste management obligations under the Waste Management Act, primarily focusing on Regional Waste Management Systems (RWMS) that require upgrades or expansions of their separate collection and recycling systems for biodegradable waste, as well as preparation for reuse, as identified in Bulgaria's National Waste Management Plan (NWMP) for the period 2021–2028.

Source of Public Funding

"Environment" Program (EP) 2021–2027, co-financed by the European Regional Development Fund and the state budget.

Current Stage of the Instrument

Selected financial intermediary

Indicative budget of the instrument

EUR 262.3 M

Implementation mechanism

Capped portfolio guarantee, stand-alone guarantees and/or risk-sharing loans with the possibility to implement a financial instrument in combination with a grant in a single operation.

Objectives of the instrument

To provide debt financing for projects of final recipients from the private and public sectors, incl. in combination with a grant, aimed at promoting and developing measures that boost:

• economic activity,
• investments in new/existing industrial parks,
• green urban environment,
• sustainable urban mobility,
• health and social infrastructure,
• educational infrastructure,
• tourism, sports, and culture,
• energy efficiency of public and residential buildings.

Source of public resource

Development of Regions Programme 2021-2027 and Competitiveness and Innovation in Enterprises Programme 2021-2027, co-financed by the European Regional Development Fund

Current stage of the instrument

Selected financial intermediaries

Financial resources

• public resources in the amount of EUR 182.5 million;

• additional private co-financing from the financial intermediaries.

Goals of the instrument

• improve urban environment (including public transport, culture and sport infrastructure);

• stimulate economic growth in the regions through the development of economic development zones in the cities, improved energy efficiency of single-family residential buildings and student dormitories;
• promote the development of tourism related to immovable cultural heritage of national or world importance.

Final recipients

• municipalities and municipal enterprises;
• private companies;
• public/private partnerships;
• private citizens.

Type of financing

• low-interest investment loans and working capital loans, including non-refundable VAT;
• up to EUR 20 million for urban environment and up to EUR 10 million for regional tourism;
• a repayment term of up to 20 years and a grace period of up to 3 years;
• guarantees for the financial intermediaries of up to 80% per individual loan and up to 25% of the entire portfolio;
• low interest rates;
• no management fee chargeable on the public resources;
• relaxed collateral requirements;
• a low level of self-financing by final recipient (0% -15%);
• for certain sectors, an option to combine the financial instrument with grant support.

Source of the public resources

Operational Programme Regions in Growth 2014 — 2020 co-financed from the European Regional Development Fund

Current stage of the instrument: reinvestment period until the end of 2031

Financial intermediaries

For the regions of Southern Bulgaria and the City of Sofia, the Fund for Sustainable Cities Consortium (FSC):

For the region of Northern Bulgaria, the Regional Urban Development Fund (RUDF)

The Fund of Funds invests additional resources in urban environment under the Joint European Support for Sustainable Investment in City Areas initiative (JESSICA). Further information is available here.