Bulgaria Finmin Unveils Plan for Mega-Fund Managing EU Financial Instruments

Politics » BULGARIA IN EU | May 20, 2015, Wednesday // 18:14
Bulgaria: Bulgaria Finmin Unveils Plan for Mega-Fund Managing EU Financial Instruments Finance Minister Vladislav Goranov. Photo BGNES

Bulgaria plans to set up a state-owned firm in charge of managing EUR 777 M of EU funds over the 2014-2020 programming period, Finance Minister Vladislav Goranov has said.

"After an in-depth internal discussion and together with the Managing Authorities of the Operational Programmes we chose the concept on the establishment of a Fund of Funds for joint management of the financial instruments in the new programming period,” Goranov said during a meeting between the government and businesses on Tuesday.

The mega-fund will be an umbrella structure in charge of managing EU financial instruments othet nthan grants - turnover credits, guarantees and project financing.

By creating the Fund of Funds, the Bulgarian government plans to replace the European Investment Fund, a structure of the European Investment Bank (EIB), which currently is managing about BGN 500 M (EUR 250 M) under the EU’s JEREMIE initiative, mediapool.bg commented in its coverage of the news.

JEREMIE (Joint European Resources for Micro to Medium Enterprises) is a joint initiative launched by the European Commission  and the EIB Group to improve access to finance for micro, small and medium-sized enterprises (SMEs) in the EU within the Structural Funds framework for the period 2007 – 2013.

According to Goranov, one of the advantages of the idea is the achievement of "economy of scale due to the fact that the financial instruments under the various OPs, targeted at one and the same category of beneficiaries, can be consolidated and reach the latter as a package".

Besides, in regard to the horizontal procedures related to financial instruments implementation, such as the development of an investment strategy, the legal procedures, audits, reporting and everything else connected to the mechanism of EU funds’ financial management and control will be common for the Fund of Funds.

Having in mind that the European Commission concept is in future the EU Funds to be increasingly provided through financial instruments, the establishment of the Fund of Funds is a step in the right direction, Goranov explained, as quoted in a ptress release by the Finance Ministry.

Goranov also said that letters had been sent to the European Investment Bank (EIB), the World Bank and the EBRD, inviting them to provide technical assistance in the establishment of the umbrella fund as well as to participate in steering committee. According to Goranov, Bulgaria has received confirmation by the financial institutions that they are ready to work together with the government for the establishment of the Fund of Funds.

 

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Bulgaria in EU » Be a reporter: Write and send your article
Tags:   Bulgaria, EU, Goranov, Finance Ministry, fund of funds, financial instruments

Advertisement
Advertisement
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria