The European Investment Fund (EIF) and UniCredit Bulbank have signed a guarantee agreement aimed at supporting around 270 micro-enterprises in Bulgaria. This agreement will allow UniCredit Bulbank to provide enhanced access to finance to entrepreneurs in Bulgaria, especially those who face difficulties in accessing credit from traditional banking sources.

Micro-credit Guarantees under Progress Microfinance are funded by the European Commission and managed by the European Investment Fund. The guarantee reduces considerably the risk for the Bank, as on a credit level a net amount of 56% of the outstanding debt on the loan is covered.

Commenting on the agreement, Head of Microfinance in the European Investment Fund Per-Erik Eriksson said: “We are happy to co-operate with a long term partner bank in this field and are thus convinced that this finance will help to benefit micro-enterprises, and in particular at-risk groups, and thereby will contribute to social inclusion in Bulgaria”.

Levon Hampartzoumian, CEO of UniCredit Bulbank, commented on the signing of the guarantee agreement that providing better access to finance for small businesses will encourage entrepreneurs to develop new projects and to think for growth, and this fact is very important to improve the overall economic environment.

The transaction will allow UniCredit Bulbank to continue further developing its current lending activity to start-ups, small and micro-enterprises, handicraft businesses and self-employed in Bulgaria. Micro-enterprises wishing to apply for a micro-loan under Progress Microfinance can directly contact UniCredit Bulbank’s branches.

About the European Progress Microfinance Facility

The European Progress Microfinance Facility (Progress Microfinance) provides guarantees and funded instruments to microfinance intermediaries. The initiative is established with EUR 203 million of funding from the European Commission and the European Investment Bank. Progress Microfinance aims to increase access to finance for micro-entrepreneurs, including the self-employed. It has a particular focus on, but is not restricted to, groups with limited access to the conventional credit market. Examples include female entrepreneurs, young entrepreneurs, entrepreneurs belonging to a minority group, entrepreneurs with a disability, sole traders etc. Loans less than EUR 25,000 are made available through selected intermediaries participating in the facility. Progress Microfinance does not provide financing or guarantees to micro-entrepreneurs or individuals directly.

UniCredit Bulbank marks the 62nd transaction signed under Progress Microfinance since its inception in 2010. To date, commitments of over EUR 130 million under Progress Microfinance have been signed to benefit EU micro-borrowers. Countries where agreements have been signed to date include Austria, Belgium, Bulgaria, Cyprus, Denmark, France, Greece, Ireland, Italy, Lithuania, Poland, Portugal, Romania, Slovenia, Slovakia, Spain, Sweden, The Netherlands and the UK.

For further information about this initiative please visit: www.ec.europa.eu/epmf

About EIF

The European Investment Fund's (EIF) central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. EIF’s total net commitments to private equity funds amounted to over EUR 7.9bn at end 2013. With investments in over 435 funds, EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. EIF’s guarantees loan portfolio totalled over EUR 5.6bn in over 300 operations at end 2013, positioning it as a major European SME guarantees actor.

More information about EIF is available on www.eif.org.

About UniCredit Bulbank

UniCredit Bulbank is the largest Bulgarian bank with assets exceeding BGN 12.7 billion at the end of 2013. The Bank services more than one million individuals and households, private clients, small and medium-sized companies, large local and international companies, etc. in around 220 branches throughout the country.

In 2014, UniCredit Bulbank celebrates a 50-year anniversary since its establishment. With confidence in the future the bank continues working FOR its clients, FOR its employees, FOR the local communities.

Since the beginning of the year UniCredit Bulbank has won a number of awards, amongst them are Global Finance magazine’s awards for “Best bank in Bulgaria” and “Best Trade financing bank in Bulgaria”, for the most innovative banking product of 2013 for the Cash M service and for “The best HR strategy for leader development” (Bulgarian Associations for Management of Human recourses). Recently EMEA Finance had declared UniCredit Bulbank as the best bank in Bulgaria.

Press information

EIF, please contact:

David Yormesor, e/zpsnftpsAfjg/psh, or visit EIF’s website www.eif.org

UniCredit Bulbank, Identity and Communications Department:

Viki Blazheva, wjlj/ebwjepwbAvojdsfejuhspvq/ch

Ekaterina Ancheva, flbufsjob/bodifwbAvojdsfejuhspvq/ch

Magdalena Ivanova, nbhebmfob/jwbopwbAvojdsfejuhspvq/ch