Republicans Propose Low-Interest Loan for Military Aid to Ukraine
US Senator Lindsey Graham expressed confidence that Congress will soon approve an aid package for Ukraine, albeit likely in the form of a low-interest loan rather than grants.
The European Bank for Reconstruction and Development will extend a loan of EUR 300 M to the Bulgarian Deposit Insurance Fund (BDIF) under a deal signed in Sofia on Thursday.
The loan has maturity of nine years with a six-year grace and will replenish BDIF’s reserves, giving “a greater financial independence and sustainability in the long run” to the Fund’s finances, the Bulgarian Finance Ministry said in a statement.
"The loan will be conditional on the accomplishment of steps undertaken by BDIF in light of the new legislation frameworks for deposit insurance and bank recovery and resolution, implemented in mid-2015 to transpose requirements of the respective EU directives," the EBRD said in a separate statement.
The funding agreement was signed by BDIF Board Chairman Radoslav Milenkov and the EBRD Regional Director for Bulgaria and Romania Matteo Patrone. Separately, Finance Minister Vladislav Goranov and Matteo Patrone signed a loan guarantee agreement which has to be ratified by parliament to take effect.
Matteo Patrone commnted in the statement that the loan was "a landmark investment for the EBRD as it supports the development of the local banking market infrastructure."
The World Bank approved a EUR 300 M loan to the BDIF last week.
The BDIF used the bulk of its reserves to cover billions in assets of deposit holders at insolvent Corporate Commercial Bank (KTB), which collapsed in 2014.
The BDIF had BGN 486 M (EUR 248 M) at hand as of end-2015, most of them in government securities. The government has said that it needs a total of EUR 500 M to ensure stability of the banking system in the long run.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
Fitch Ratings, a leading credit rating agency, has affirmed Bulgaria's Long-Term Foreign-Currency Issuer Default Rating at 'BBB' with a Positive Outlook
The National Statistical Institute reports that in 2023, the poverty line for the entire country stood at 637.92 BGN per person per month within households
Bulgaria's long-anticipated entry into the Eurozone may face a delay, as the country is unlikely to meet the inflation criterion required for the introduction of the euro on January 1, 2025
The price of retail lamb in Bulgaria has surged by 8.4% on an annual basis, according to statistics released by the Ministry of Agriculture and Food, with data sourced from SAPI indicating an average price of BGN 25.27 per kilogram as of April 10
According to recent data from the Confederation of Independent Trade Unions of Bulgaria (CITUB), the financial strain on Bulgarian households continues to intensify
Experts suggest that Bulgaria's admission to the Eurozone is more realistic in January 2026
UN Happiness Report: Bulgaria's Astonishing Leap in Rankings
Bulgaria: 3 Regions With Lowest Life Expectancy - EU Report 2022