BDB welcomes in Sofia representatives of 26 European financial institutions

Increasing the role of the financial instruments during the new program period 2021-2027 and the business development of the European Investment Fund are among the leading topics of the meeting of EIF’s financial institutions shareholder’s group, which takes place on 24th and 25th October in Sofia hosted by Bulgarian Development Bank.

“EIF is the biggest pol of financial instruments in Europe. Today we focus on the benefits that the financial instruments bring to the business under the existing programs, as well as on how the experience of the current programing period could forward us to the next one”, said Stoyan Mavrodiev during the official opening.

26 private and public financial institutions from 16 countries participated in the strategic priorities’ dialogue along with representatives of the European Investment Fund (EIF) and its other shareholders – the European Investment Bank (EIB) and the European Commission (EC).

“4 years ago, when EFSI was established, there was a lot of criticism, due the fact that it was an innovative financial instrument”, said MEP Eva Maydell, a keynote speaker in the meeting. Today it is clear that EFSI is a sustainable solution that led to an 0.9% increase of EC’s GDP, as well as to creating additional 1.1 million jobs”. That is why we will continue applying this formula in the EU budget 2021 onwards, where the InvestEU program will be the leading instrument to support EC’s investments”, added Maydell, who is also reporting on EFSI’s implementation to EPP.

25% of InvestEU’s resources will be available for implementing partners such as the national promotional banks. According to Mrs. Maydell, the latter will facilitate the local businesses that could apply for financing directly before them, instead of the European Investment Bank.

Bulgarian Development Bank is a shareholder at EIF since 2003, when the first guarantee agreement was signed between the bank and the Fund. BDB’s Group has some successful bilateral programs with EIF: Progress’ microfinancing program, COMSE/ Juncker Plan counter-guarantee for both BDB and National Guarantee Fund, a guarantee for the JOBS Microfinancing Institutions under Progress’ program and SIA (Social Impact Accelerator) initiative.

EIF’s main shareholders are the EIB with a capital participation of 58.53% and the EU, represented by EC, with 29.71%. The minority shares of 11.76% are held by 34 financial institutions from the public and private sector, BDB included.