BDB with a program for micro-companies affected by COVID-19
Within two weeks, the government's program to support business and individuals on unpaid leave will start. This will happen after the bank's capital increase, which is expected in days. The financial institution is already processing the first requests received under its own program for micro-companies affected by COVID-19, BDB’s CEO Stoyan Mavrodiev announced during a briefing today. The financial resource will cover the most affected sectors by the pandemic, including sole traders, craftsmen, farmers and self-insured persons whose business is hampered by the state of emergency. It is the first proprietary program among EU promotional banks to support the affected companies by the COVID-19 pandemic, which is complementary to the efforts of the Bulgarian government.
BDB is one of the few banks with specific proposals that will really support entrepreneurs in the crisis, Stoyan Mavrodiev said. To ease commercial banks, BDB will take more than the usual risk under its guarantee programs, covering up to 80 % of the risk on loans to be granted. The measure to secure liquidity through the intermediary purchase of bad claims is also in support of commercial banks.
“BDB's role in this crisis is of the utmost importance. The Bank is mobilizing all its attracted resource to provide adequate solutions to entrepreneurs and the measures we announced this morning are the first step towards this. This is the first but not the last such tool”, the Chief Executive Officer said.
“Our goal is to work as much as possible to the benefit of the people who are currently suffering an economic blow and to help them normalize their financial situation" Mavrodiev added.
BDB’s executives have announced that they will donate their salaries in support of health facilities in the country and the Emergency Medical Service in Sofia and the region during the state of emergency. The financial institution has also organized a donation campaign among its employees to support first-line medical staff.