HEBROSBANK EXPANDS FINANCING OF SMALL AND MEDIUM-SIZED BUSINESS
More than 1,000 credit projects worth BGN50MN-plus have been approved under HEBROSBANK's Prospects programme for financing small and medium-sized enterprises. By the year-end we plan to extend loans of BGN100MN under that programme. We'll double our credit portfolio for the sector and we'll win over our share of the market, the private bank's CEO Gautam Vir said. The programme was launched in cooperation with the European Bank for Reconstruction and Development (EBRD) and the European Union in order to finance the growth of small and medium-sized companies in Bulgaria. The credit line is worth EUR6MN, but a new one is currently being negotiated, which will direct a financial resource to that sector, the bank's CEO specified.HEBROSBANK is promoting products of its programme from March 1 till April 30. The financial institution has promised to the candidates for a loan to notify them about its decision within four days after their application, undertaking to refund 50% of the fees it charges for considering the application if it does not observe that term. A ceiling of BGN250,000 has been set for the credits, which are earmarked for investments, turnover capital, and agriculture. The bank will be extending loans up to BGN60,000 without demanding a business plan; an economic explanation of the reasons for the demanded financing will be sufficient.The short terms for allocating long-term credits is an advantage of the programme. Therefore, the interest towards HEBROSBANK's products has increased 50%, insiders say. Under the procedure, the negotiations between the bank's experts and the individual clients are most important. All kinds of assets will be accepted as a collateral, the financial institution's procurator Alexander Chachev explained. More than 1,000 participants attended the educational initiative My Prospects - Financing of Small and Medium-Sized Business, which included nine seminars in the bigger Bulgarian towns.The applications for credits, submited from February 26 till March 12, 2003, increased by 50% from the same period of last year.