UniCredit Bulbank will grant loans on eased conditionsfor issuing bank guarantees, letters of credit and export turnover limits. This became clear after the Bank officially signed an agreement on the guarantee scheme with the European Investment Fund (EIF). The transactions will be supported under the Trade Finance Guarantee Facility, implemented by the European Investment Fund and financed by the Ministry of Economy of the Republic of Bulgaria with national funds restored from the implementation of the JEREMIE Initiative operations (a joint initiative set up by the European Commission and EIF in 2007, predecessor to the current programmes managed under the program period 2014- 2020).

With the funds under this scheme UniCredit Bulbank will finance initiatives of the local small, medium and intermediate enterprises. For a period of three years, the Bank will provide loans to businesses on eased conditionsfor transactions related to trade finance. In addition, the scheme allows working capital loans, with a guarantee coverage rate of up to 80% for each transaction, given the current emergent situation and the more favorable eased conditions for financing.

"Together with the European Investment Fund, we will offer our clients a workable financing solution for trade and working capital transactions. We as a Bank, are striving to be part of the solution to the current crisis. In 2020, we have offered our clients various ways to ease the payment of their debts, and now we will offer real support to go together on the path of economic recovery, " said Teodora Petkova, CEO and Chairman of the Management Board of UniCredit Bulbank.

Raluca Popescu, Head of Corporate, Investment and Private Banking of UniCredit Bulbank, explained that “thanks to the signed agreement, UniCredit Bulbank will be able to offer preferential terms and conditions to its clients related to the requirements for collateral securing conditional limits for bank guarantees, letters of credit and working capital financing.”

The guaranteed transactions under this instrument are targeted at SMEs and mid-caps. The eligible companies can be engaged in a large number of business activities, without any significant limitations on the economic sector. The majority of loan applicants are expected to be representatives of manufacturing enterprises, the transport sector, retail and wholesale traders.

UniCredit Bulbank is the leader in Bulgaria in terms of volumes and number of processed trade finance transactions.  The bank offers the full range of trade finance products: bank guarantees, documentary letters of credit and cash collection - import/export, confirmation of letters of credit, discounting and post-financing. The services help clients minimize the commercial risk related to the transactions, especially when working with less familiar counterparties, as well as in cases of import from and export to destinations with higher risk.

The bank's teams of experts in trade finance offer consultations to the companies at each step of their trade finance transactions, while the experts from the European Funds team manage the correct usage of the guarantee instruments.

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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

Ekaterina Ancheva, tel +359 894 518 193 , flbufsjob/bodifwbAvojdsfejuhspvq/ch