Three leading banks in Bulgaria to join energy efficiency facility
The EBRD has signed credit lines promoting energy efficiency in the residential and small and medium-sized enterprises (SME) sectors, as well as trade finance facilities with the three leading Bulgarian banks – Postbank, Piraeus Bank Bulgaria A.D. and United Bulgarian Bank A.D. (UBB) – in support of the local economy and intra-regional trade. The total amount of financing to be received by the three banks is €64 million, of which Postbank will receive €24 million, Piraeus Bank Bulgaria €13 million and UBB €27 million.
The three banks will join the EBRD Bulgarian Energy Efficiency for Competitive Industry Finance Facility (BEECIFF), launched in April 2012, which provides financing to SMEs for energy efficiency investments eligible for grants under the government's Green Economy Programme, which is supported by EU Structural Funds.
Piraeus Bank Bulgaria and UBB will also participate in the EBRD's Residential Energy Efficiency Credit Line (REECL), for on-lending to individuals and housing associations to finance housing refurbishments and residential energy efficiency projects. Under this programme clients of the participating banks can also benefit from technical assistance and grants sponsored by the Kozloduy International Decommissioning Support Fund.
Further EBRD support will be provided to the three banks under trade facilitation agreements to finance international and intra-regional trade transactions.
Nick Tesseyman, EBRD Managing Director, Financial Institutions, said: "Postbank, Piraeus Bank Bulgaria and UBB are long-standing and experienced clients of ours. We are pleased all three banks remain committed to supporting local small and medium enterprises in becoming more efficient and competitive, as well as helping households lower their energy costs. In addition, the banks' focus on financing trade is extremely important to encourage regional trade, help boost exports and support economic growth."
The funds are being provided under the Joint IFI Action Plan for Growth agreed between the EBRD, the World Bank Group and the European Investment Bank, in November 2012. The Action Plan covers the countries of central and south-eastern Europe, and pledges commitments of €30 billion for the period 2013-14. EBRD