The Ministry of Innovation and Growth entrusts the European Investment Fund (EIF) with the implementation of the financial instruments from the National Recovery and Sustainability Plan (NRSP).

The agreement for the management of equity investments was signed on December 5, and last month on November 7, and for the debt ones, the press center of the ministry informed.

The two documents are yet to be ratified by the National Assembly.

After that, the EIF will start the selection of financial intermediaries (commercial banks) and fund managers to financially support micro, small and medium enterprises in the country through mentorship.

The financial instruments under the NPVU will be available to businesses in the middle of next year.

They are five in total - three equity and two debt, and are worth a total of BGN 660 million. With the first equity instrument, BGN 146.7 million (EUR 75 million) will be invested in the recovery of small and medium-sized enterprises from the Covid crisis enterprises, companies with less than 500 employees and those with an average market capitalization of up to 3,000 employees.

The funds will be able to cover overhead costs, salaries, materials or supplies, retain jobs and purchase new equipment.

The second equity instrument will increase the capacity of companies to create and implement innovations.

It will also have a budget of BGN 146.7 million (EUR 75 million).

The money will be invested in development, acquisition of intellectual property rights and knowledge transfer.

It will also be possible to acquire machines with which to develop innovative products.

The tool is aimed at SMEs, companies with less than 500 employees and those with an average market capitalization of up to 3,000 employees.

The third equity instrument, which is for climate neutrality, will have a budget of BGN 58.7 million (EUR 30 million).

It will support SMEs, as well as special-purpose companies (which may include, in addition to enterprises and public institutions and non-governmental organizations), major infrastructure plans, projects for equipment and facilities that contribute to environmental protection, digitization, to overcome the adverse impact on the climate, as well as for the transition to a digital economy and improving social living conditions.

The EC approved the Science and Innovation Program for BGN 2.14 billion.

The two debt instruments will have a total value of BGN 300 million (EUR 150 million) and will provide support for the growth and improvement of the companies' energy efficiency.

One will target riskier SMEs and those with fewer than 500 employees.

The aim will be to secure their operational costs and provide liquidity to deal with the consequences of Covid.

Companies will be able to take out investment loans, leases, revolving credit lines (including overdrafts), bank guarantees, etc.

The other guarantee instrument will provide the same opportunities, but to realize investments for energy efficiency and more energy production from RES and greater energy independence.

In addition to micro, small and medium-sized enterprises, individuals will also be able to benefit from it.

business

financial instruments

Ministry of Innovation and Growth