DEG OFFER…D A NEW PROJECT FOR FINANCING
The German company for investments and development - Deutsche Investitions-und-Entwicklungs GmbH (DEG) offered a new project for financing Bulgarian entrepreneurs. According to Berndt Heimanns, DEG Chief Financial Manager of external financing, the company will launch long term financing to private investors for establishing new companies or expansion of existing ones. A precondition is that the company undertaking the investment project is at least 50% owned by a German company.
The Public - Private Partnership (PPP) project provides upto half of the necessary investment for the project, the maximum limit being EUR200,000. The repayment term varied from four to ten years, with optional three year grace period. Interest can either be fixed or floating. In the first case the entrepreneur will have to pay 10% annual interest, while in the second case interest will be calculated for each six months period on LIBOR+ basis. Generally, experts consider these credit conditions much more favourable than those offered by the commercial banks.
According to Peter Time, the Project Manager, the PPP programme aims at supporting investments in education, ecology and social care. Credits are launched in other sectors as well, excluding arms production and environmentally harmful products.
The first PPP investment project was the implementation of software at the Russe based Sparki branch for designing computer models of the machines and equipment produced there.
DEG has started its activities at the Bulgarian market in 1996 and the credits it has launched amount to EUR14MN. The bigger projects credited by DEG in Bulgaria were developed jointly with First Investment Bank, Municipality Bank and the lease company Interlease. The construction of the new fair and exhibition ground in Sofia, at the Tsarigradsko Shosse boulevard was also financed by the German company.