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Encouragement Bank

Bulgaria | Financial Institutions

Identification Code:: OP/01/0125
Total Operation Cost:: — EUR
Maturity:: 12 months
Operation Status:: BSTDB Approved Amount – Approval Date

5.000.000 EUR – 19 Sep 2003
: BSTDB Signed Amount – Signed Date

-5.000.000 EUR – 15 Oct 2005

5.000.000 EUR – 04 May 2004
: Status:
Cancelled
Description and Purpose of the Operation:: Revolving and committed pre-export finance facility aimed to finance sub-loans to be on- lent by Encouragement Bank to Beneficiaries exclusively for the purposes of financing working capital necessary for the performance of Underlying Cost Transactions to which the Beneficiaries are a party.
Countries of Operation:: Bulgaria (100,00%)
Financial Product:: Trade Finance
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: EB was incorporated in Bulgaria on 11 March 1999 as joint-stock company, with the Ministry of Finance of Bulgaria holding 99.996% of the issued share capital. The bank’s main objective is to support the Bulgarian government’s economic policy by financing small and medium sized enterprises (SME) and promoting the export sector. The bank conducts all banking transactions under Bulgarian Law, except accepting deposits from individuals, dealing with precious metals and issuance and management of bank cards.
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: The Pre-Export Finance Facility supported Bulgarian production and exports to BSEC and other countries. The Facility was used to advance sub-loans to Bulgarian exporters to finance production and enable proposing deferred payment terms to their counter-parties under export contracts. The facility supported EB’s core operations promotion of Bulgarian exports and SME’s. By working with EB, BSTDB was able to reach a larger number of companies in Bulgaria and contributed to the increase of intra-regional trade among BSEC countries.
Environmental Classification and Impact:: Enviromental Impact
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org