BULGARIAN DEVELOPMENT BANK

Transcription

1 BULGARIAN DEVELOPMENT BANK SME Asset-Backed Financing Instruments: Opportunities in Europe Bratislava, May 15 16,

2 Mission and Objectives of BDB Mission: to support the development of the Bulgarian economy, by promoting the export and supporting the implementation of the SMEs State economic policy. Objectives: Support SMEs Improve and stimulate their export potential Ensure optimal and effective use of state funds Centralize development activities 1 2

3 Tasks of BDB Pre-export and export financing of SMEs Provision of: 1.Guarantees 2.Loans 3.Development capital Attraction and intermediation of medium and longterm local and international resources and subsidies. 2 3

4 Principles of BDB BDB will operate by applying the following principles: Transparency Neutrality Efficiency Profitability Effectiveness Good practice Market compatibility and non-competition with the other market players 3 4

5 Bulgarian Development Bank ACT The structure and activities of the BDB will be regulated by a special BDB Act, which states: BDB is a specialized credit institution with minimum 51% ownership by the Bulgarian State The rights of the State will be exercised by the Minister of Finance in the General Shareholders Meeting EIF, EIB, CEB and Development banks from EU member states can participate up to 49% of the capital of BDB. State guarantees can be provided for financing through bond issues and loans over 1 year. Within 3 months from the entering in force of the law the name of EB will be changed into BDB and the respective changes in the status will be made. 4 5

6 Sources of Finance of BDB The activity of the bank shall be financed from: Own resources Bond issues Loans from national and international institutions EU funds and public funds with special purpose Corporate deposits Other means 5 6

7 Structure of the BDB F u n d i n g International financial Institutions EU Funds Bond Issue State Budget PARTICIPATION IN THE CAPITAL BDB (Encouragement Bank AD) Transparency Efficiency Market Compatibility BANKING ACTIVITY Special BDB Law Law for Credit Institutions Law for State Budget Other acts R e g u l a t i o n VENTURE CAPITAL FUND Venture Capital NATIONAL GUARANTEE FUND Guarantees Bank Partners SMEs Pre-export financing and other services in support of the export activities Long-term investment financing Bank Partners SMEs S M E s 6 7

8 Support for Export Activities Refinancing of Bulgarian banks supporting local exporters Refinancing of foreign banks, financing buyers of Bulgarian goods and services Export and pre-export financing Techniques for financing of international commercial transactions: Discount of letters of credit; factoring; forfeiting, etc. Export Guarantees:Tender guarantee; Performance guarantee; Advance payment guarantee, etc. Advisory services 7 8

9 Long-Term Investment Financing Providing Loans mainly to SMEs established in Bulgaria, through: 1. The Bulgarian commercial banks as intermediaries: On-lending 2. Directly through the BDB s loan programs The Bulgarian Development Bank will not compete with other privates banks, but rather supplement the financial market by stimulating the supply of long-term loans to the Bulgarian SMEs. 8 9

10 Venture Capital Financing Creation of a VC Fund as a subsidiary of the Bank BDB holds not less than 51% of the capital of the VC Fund Other shareholders can be local, foreign and international financial institutions. The activity of the VC Fund is guided by the priorities of the BDB The Fund shall participate in the equity of local SMEs with the purpose to : Increase their competitiveness Provide capital for R&D Increase production potential Facilitate SMEs prepare for raising capital from the regulated market Facilitate the utilization of the EU funds 9 10

11 National Guarantee Fund Creation of a Guarantee Fund as a subsidiary of the Bank BDB holds not less than 51% of the capital of the Guarantee Fund Other shareholders can be local, foreign and international financial institutions. The activity of the Guarantee Fund is guided by the priorities of the BDB Activities: Issuing guarantee letters to complement the collateral on loans of local SMEs, which may cover up to 50% of the liability Issuing guarantees for participation in tenders, for good performance, against advance payments, etc

12 Thank you for your attention! 11 12