Author: Ekaterina Kirilova, Head of Marketing and Segments Department, UniCredit Bulbank

Payment Services:

The market in payment services continues to develop at a fast rate. The new online and mobile payment channels will play a key role in defining the future market leaders in the sector.

UniCredit Bulbank offers online and mobile payment channels to its micro and small enterprise clients (hereinafter MSE) ensuring a 24/7 online access to and information about the included accounts, lower fees and commissions for transactions compared to those ordered on paper, and access to a greater number of services. We continue our effort towards expanding the services offered through electronic channels, such as payment management, requesting/opening accounts, cards and other services, management of used loans, etc.

Deposits:

In the past year there was a smooth but stable increment in the volume of attracted funds among clients in the MSE segment. In the course of the year, their volume grew by around 5%. Traditionally for the segment, the predominant volume of attracted funds is kept by clients on current accounts. This trend became even more prominent in 2013, when the funds kept on term deposits accounted for only 10% of the total volume of attracted funds, as against the 23% end of 2012. This can also be seen as a consequence of the increased activity of enterprises.

There has continued the trend of decreasing term deposit interest rates as a consequence of the increased rate of saving by non-financial enterprises due to the deteriorated business climate, the relatively low interest to the product among clients in the segment and the good liquidity of banks.

MSE Loans:

Our expectations from 2012 for an increased activity of the enterprises in this segment have been confirmed. The EU initiatives ongoing in 2012 (Rural Development Programmes, OP Competitiveness – Energy Efficiency and Green Economy, JEREMIE 1, JEREMIE 2, etc.) have been a main factor in fostering enterprises’ investment activity, which has continued to the present year as well. As a result of the investment projects implemented in 2013 there was a substantial growth in working capital loans – the volume of granted working capital loans is 15% higher than in the previous year. The need for increased working capital volumes is also an indicator of a certain activation and enlargement of the business of enterprises as a result of the performed investments.

The trend of lending to MSE being predominantly fulfilled through joint initiatives with foreign institutions – guarantee and grant schemes such as JEREMIE (line 2), NGF (OP “Fisheries and Aquaculture” and RDP), OP Competitiveness, RDP of the Agriculture State Fund, etc. was preserved in 2013 as well.

The price terms of loans offered by the banks (including interests, fees and commissions) saw a substantial decrease in 2013. This was due both to the strong competition on the inter-bank market, and to banks’ utilization of lines aimed at fostering the economy - EIB, JEREMIE 2, the Council for European Affairs, etc.

Forecast for 2014:

In the recent years, the clients in the MSE segment have appreciated the more favorable investment opportunities and the offered additional mechanisms which contribute for improved loan repayment conditions. In 2014 we will continue our effort towards cooperation with national and international financial institutions such as EIB, EBRD, NGF, etc. so as to ensure such mechanisms – guarantee schemes, dedicated funds under more favorable price terms, etc. They will be focused on financing investment projects and providing working capital needed for improvement of the productivity of enterprises. A focal point will be financing innovative projects, young entrepreneurs, start-ups, etc. One of the significant impediments to the regular functioning of enterprises in 2014 (mainly in the agricultural sector) will be the end of the 2007-2013 programming period and the still unclear terms and conditions of the EU Operational Programmes for the next programming period.

More information for clients:

UniCredit Bulbank, Call Centre

Phone: 0700 1 84 84

More information for media:

UniCredit Bulbank, Identity & Communications Department

Viktoria Blajeva, Phone: + 359 2 9264 993, wjlj/ebwjepwbAvojdsfejuhspvq/ch

Ekaterina Ancheva, Phone: + 359 2 9264 963, flbufsjob/bodifwbAvojdsfejuhspvq/ch

Magdalena Ivanova, Phone: + 359 2 9232 528, nbhebmfob/jwbopwbAvojdsfejuhspvq/ch