Bulgaria is Third in the EU to be Financed by the Juncker Plan in Respect to GDP

Politics » BULGARIA IN EU | January 12, 2018, Friday // 13:25| Views: | Comments: 0
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Bulgaria: Bulgaria is Third in the EU to be Financed by the Juncker Plan in Respect to GDP Source: Twitter

Bulgaria ranks third in the EU in terms of the Junker plan on the gross domestic product of the country. Before Bulgaria are Estonia and Greece, according to data from the European Strategic Investment Fund (EFSI), known as the Juncker Plan, in December 2017, reports Mediapool.bg

So far, Bulgaria has got approved funding of € 349 million, which is expected to attract additional investments of € 1.57 billion.

The largest approved financing is the € 150 million credit line for the Bulgarian Development Bank. Expectations are attracted to € 408 million through commercial banks that provide loans to small and medium-sized businesses. Part of the funding is focused on projects in areas with high unemployment, as well as to encourage start-up or expanding businesses.

Sunflower Company "Oliva" AD, based in Knezha, was the first Bulgarian company to receive a direct corporate loan under the Junker plan of € 31 million. It is the largest in the food industry in Bulgaria with a turnover of more than half a billion BGN 2016. The Juncker-funded project is for the construction of a new factory for the production of sunflower oil in Beloslav worth € 62 million. The first stage of the plant is expected to be ready by the end of this year, and with its full capacity to work in 2020. "Oliva" has two more processing plants, rapeseed and soybean in Knezha and Polski Trambesh. The majority shareholder of the company with a share of over 97% is "Bildkom" EOOD, which trades with grain.

The other approved loan of € 100 million for the Junker plan is for Biovet Peshtera, part of the group "Huvepharma" of the brothers Kiril and Georgi Domuschievi. The contract with them will be signed today at the National Palace of Culture before the press conference of the European Commission President Jean-Claude Juncker and Prime Minister Boyko Borisov. The whole project is worth € 212 million and is for the construction of a second drug factory in Peshtera and expanding the production of the plant in Razgrad.

Separately, according to the Junker plan, the commercial banks in Bulgaria were supported by the signing of nine agreements with the European Investment Fund for a total of € 68 million. They are expected to finance over 6000 small and medium enterprises with nearly € 923 million.

A good example of EFSI's support for financing through banks is given by the Stara Zagora company "Karad" Ltd., which is engaged in the sale of machinery for agriculture. The company has received an investment loan from Sibank to expand its operations.

Separately, Bulgarian companies and scientific organizations receive funding from approved joint projects with other member states, mainly in R & D.

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