SME LOANS UNDER THE JEREMIE FLPG FINANCIAL INSTRUMENT GENERAL INFORMATION This publication has been produced with the assistance of Operational Programme Development of the Economy 2007-2013, co-financed by the European Union through the. The contents of this publication are the sole responsibility of UniCredit Bulbank and can in no way be taken to reflect the position of the European Union.
THE SMALL AND MEDIUM-SIZED ENTERPRISES IN BULGARIA 99.8% of all enterprises in Bulgaria; Category Employees Turnover Asset Value 75% of all employees in the enterprises. MICRO- ENTERPRISES 1 to 9 < BGN 3 900 000 < BGN 3 900 000 need to invest in technological modernization; SMALL ENTERPRISES 10 to 49 < BGN 19 500 000 < BGN 19 500 000 limited access to finance. MEDIUM-SIZED ENTERPRISES 50 to 249 < BGN 97 500 000 < BGN 84 000 000 2
GUARANTEE AGREEMENT TERMS Agreed Portfolio Volume: 85 000 000 Maximum Loan Amount: 1 875 000 Availability Period: until 31.12.2015 JEREMIE First Loss Portfolio Guarantee Guarantee: 80% of the loan amount Guarantee Fee: NONE Enhanced access to finance for SMEs 3
DESCRIPTION OF THE JEREMIE FLPG The client obtains an investment loan and/or standard working capital loan from the product portfolio of UniCredit Bulbank. Priority sectors: industrial production; innovations; trade. JEREMIE FLPG guarantees 80% of the loan amount. Companies do not pay any Guarantee fee. Companies obtain cheaper loans; provide less collateral; improve their competitiveness through implementation of new investment. JEREMIE First Loss Portfolio Guarantee Instrument is a risk sharing mechanism which allows banks to ease the access to finance to SMEs in Bulgaria. Through the JEREMIE First Loss Portfolio Guarantee Instrument the Bulgarian SMEs benefit from better loan parameters and reduced collateral requirements. 4
WHAT WE OFFER LOAN PURPOSE financing an investment business plan; financing an increased working capital needs for company expansion. APPLICABLE PRODUCTS investment loans, standard working capital loans related to investment implementation or expansion of company business; overdrafts, revolving loans, letters of credit; MATURITY minimum: 12 months; maximum: 120 months (including grace period). COLLATERAL & PRICE reduced loan collateralization (max. collateralization: 50%) and interest rate reduction (max. 125 b.p.) on the basis of individual approach depending on creditworthiness analysis. CURRENCY BGN; EUR. GUARANTEE FEE NONE 5
ADVANTAGES OF THE JEREMIE FLPG CREDITWORTHINESS OF THE CLIENT 100% 80% Loan amount Collateral provided by the client 30% Collateral provided by the client 50% Guarantee coverage interest rate reduction (up to -125 b.p.) interest rate reduction (up to -75 b.p.) 6
ELIGIBILITY CRITERIA BORROWERS Small and medium-sized enterprises which: are registered in Bulgaria and operate in Bulgaria. SECTOR OF ECONOMIC ACTIVITY / INVESTMENT The enterprises / investments are ineligible if they fall within one of the following sectors: production and processing of agricultural goods; fisheries and aquaculture; real estate purchase for the purpose of on-selling or on-leasing housing construction (ineligible loan purpose); road freight transport vehicle for road freight transport sector; production and trade with distilled alcohol or tobacco products; gambling. DOUBLE FINANCING & DE MINIMIS AID Combination with other forms of public support is not allowed. With the loan under JEREMIE FLPG the upper threshold for de minimis aid must not be exceeded. 7
Thank you for your attention! UniCredit Bulbank European Funds Team ECC@UniCreditGroup.BG The financing provided hereunder by the Joint European Resources for Micro to Medium Enterprises (JEREMIE) Initiative is implemented through the Operational Programme Economy 2007-2013, co-financed by the and the state budget. 8