UniCredit Tower shot from the ground

Unlocking loans for SMEs and mid-caps


With the ongoing war in Ukraine creating disruption to supply chains and hikes in energy costs, Bulgarian businesses have been boosted by a landmark guarantee agreement between UniCredit Bulbank and the European Investment Bank (EIB).

The deal has unlocked close to €200 million to finance businesses, with funding targeted at small- and medium-sized companies (SMEs) and mid-caps from different sectors that have the potential to grow and create jobs in Bulgaria. In addition to mitigating the impact of the war on supply chains and inflation, the agreement also aims to support foreign investments and tourism, which play crucial roles in the country’s economy but have been affected by the regional instability.

SMEs account for around 50% of business in Bulgaria – and the competitiveness and development of SMEs such as grain exporters Magic Flame is a strategic focus for UniCredit Bulbank. The new loans have provided much-needed support for Magic Flame by enabling growth and expansion. 

We have been in the grain market for more than 14 years. Every year we export over 200,000 tons of agricultural products worldwide. We need more and more raw material [such as sunflower seeds] to secure our production for the next year but, due to the war, the prices of raw materials are getting higher and higher.”

Borislav Hristov

CFO Magic Flame

We build on the long-term partnership of UniCredit Bulbank and the European Investment Bank with another significant agreement that will support our strategic goal - to accelerate the development of the Bulgarian economy and unlock the growth potential of medium and large enterprises. As a market leader in corporate banking, it is important for us to provide new financing opportunities to companies in sectors that are structurally critical to the country's development. We expect that the agreement will further improve the environment for business development by providing easier access to financing.”

Borislav Bangeev

Head of Corporate Banking and Member of the Management Board of UniCredit Bulbank

Lilyana Pavlova

The European Investment Bank works to increase the competitiveness of European economies, especially in countries with lower per capita income. In times of geopolitical confrontation, uncertainty and high prices, together with UniCredit Bulbank we provide access to advantageous financial resources for medium and large businesses to implement their new projects, expand or modernize their operations and thus boost Bulgaria's economy.”

Liliana Pavlova

EIB Vice President at the time

We are grateful for the long-standing partnership with the National Guarantee Fund. By uniting our joint efforts, we manage to provide opportunities for easy and quick access to finance. So far, we have helped over 2500 Bulgarian companies to start or develop their business."

Tzvetanka Mintcheva

CEO of UniCredit Bulbank

The NGF guarantee covers up to 50% of the amount of the newly granted investment and working capital loans by supplementing or replacing the necessary collateral under them. Thus, the agreement makes it possible to guarantee a portfolio of loans for small and medium-sized businesses in the amount of up to BGN 200 million. We are confident that this cooperation will contribute to new success stories of Bulgarian entrepreneurship."

Iliya Karanikolov

BDB Executive Director and MB Chairman

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