EBRD launches program to support Bulgarian economy through InvestEU funds
- The EBRD has launched a guarantee program in Bulgaria targeting various sectors.
- The program focuses on small and medium enterprises and renewable energy expansion.
- Financial institutions are encouraged to make use of the funds quickly to maximize their impact.
In Sofia, Bulgaria, the European Bank for Reconstruction and Development (EBRD) has officially launched its program for guarantee agreements. This initiative is part of the larger InvestEU scheme by the European Commission, which aims to enhance financial support for various sectors in the country. The event took place at the Intercontinental hotel, where EBRD Managing Director Francis Malige highlighted Bulgaria's advancements in reducing energy intensity but pointed out that the nation still ranks low within the EU in terms of carbon efficiency. To tackle this issue, substantial financing is essential, with renovations of building stock in Bulgaria projected to require approximately 13 billion euros. The program is particularly focused on supporting small and medium-sized enterprises, the corporate sector, sustainable construction practices, and the promotion of renewable energy initiatives. Current partnerships include two Bulgarian banks, Post Bank and ProCredit Bank Bulgaria, which have already begun benefiting from the guarantees under the InvestEU scheme. Malige indicated that there are no fixed amounts assigned to individual countries, urging financial institutions in Bulgaria to leverage these funds promptly before they are fully allocated. Additionally, the Board of Directors of the EBRD approved a new strategic plan for Bulgaria that outlines the bank's commitment and investment plans for the upcoming five years leading up to 2030. According to Manuela Nessel, the head of the EBRD for Bulgaria, this strategy is in alignment with the government’s priorities, focusing on the transition toward a greener economy, fostering innovation for enhanced competitiveness, and strengthening financial markets. Through this program, the EBRD aims to not only support economic recovery but also to address environmental challenges that the country faces. The importance of transitioning to renewable energy sources and improving sustainability practices is amplified by the need to meet EU carbon efficiency standards. As the program unfolds, the EBRD's initiatives could significantly contribute to Bulgaria's economic dynamism and its capacity to meet future challenges in energy and environmental sustainability.