The agricultural sector is one of the fastest growing and promising sectors in the Bulgarian economy. For the past 5 years, the return on the invested capital is nearly 20%. This makes agriculture the sector with the highest profit rate, according to an analysis made by Economic Research Team of UniCredit Bulbank.  The analysis was prepared in relation to the Fifth National Meeting of Agricultural Producers in Bulgaria, February 8-10 in Golden Sands, which happens with the partnership of UniCredit Bulbank.

According to Kristofor Pavlov, chief economist of UniCredit Bulbank, the agricultural sector is characterized by still low levels of financial indebtedness. That is why agricultural lending is expected to remain faster paced than the lending in the other sectors of the economy.

By 2030 the global food consumption will grow by one third. This will put Bulgaria in a good position due to its favourable climate and geographical location.

 “The long-term outlook for the sector is very favourable against the background of the established traditions, especially given the fact that the Bulgarian agricultural products are becoming more and more recognizable on foreign markets. Bulgarian producers have significant opportunities and it is expected that they will benefit considerably from the transition of the sector to niches characterized by a higher added value –  vegetable growing and animal husbandry, bio and organic production”, states Kristofor Pavlov.

According to Milen Vlaev, Agriculture Expert in Retail Banking at UniCredit Bulbank, grain production is still the leading sector in the Bulgarian agriculture. Besides, more and more agricultural producers start diversifying their production. Milen Vlaev, together with Svetoslav Todorov, who is in charge of the branch network of UniCredit Leasing, will be guest lecturers at the National Meeting of Agricultural Producers in Bulgaria on February 9.

 “Great popularity are gaining the essential oil crops – especially lavender and melissa. There is also growing interest in orchard planting and in animal husbandry”, comments Vlaev.

In his words, the Bulgarian vegetable growing has a great growth potential. Ousting the production coming from Greece and Turkey will not be that easy though.

The weather in these two neighbour countries favours greenhouse growing of vegetables with less costs and offering of these vegetables on the market for longer time. Nevertheless the prospects before the Bulgarian agricultural products are more than promising.

To meet the needs of financing in the sector, UniCredit Bulbank offers to the agricultural producers comprehensive solutions – from professional consultation by a bank or leasing expert through a wide range of loans and lease products to working capital and investment financing. The agricultural producers can get acquainted with these opportunities from February 8 to February 10 at the Fifth National Meeting of Agricultural Producers in Bulgaria.

“Here, at one place, the client can get all financial products and services it needs. Thus it will receive much better price than if it uses the same products from several different banks”, explained Vlaev. 

At the meeting, the agricultural producers will get practical tips about investment loans for financing of projects under the Rural Development Programme and working capital financing against state subsidies, explained Milen Vlaev.

UniCredit Bulbank provides up to 100% financing of all receivables from State Fund Agriculture and the direct payments under the single area payment scheme.

 “When the client comes to us at the beginning of the agricultural year with an application submitted with State Fund Agriculture, it can receive up to 100% of the funds which the fund will pay to it at the end of the year”, explained Vlaev.

Along with the main banking products developed for agricultural producers, UniCredit Bulbank offers to its clients the freedom to make payments at any time and from any place via the mobile and online banking. The clients can benefit also from business overdraft financing, as well as fromvoluntary pension insurance and life insurance from Allianz.

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Additional media information:

Victoria Blajeva, tel +359 (0) 2 9264 993, wjlj/ebwjepwbAvojdsfejuhspvq/ch

Beatris Nikolova, tel +359 (0) 2 9232 528, cfbusjt/ojlpmpwbAvojdsfejuhspvq/ch