The European Bank for Reconstruction and Development (EBRD) has announced that it will lend Allianz Bank Bulgaria (ABB) a EUR 5 M loan to support the development of local micro, small and medium-sized enterprises (SME), The Georgian Financial reported Friday.

The loan comes under the EU/EBRD SME Finance Facility and is being complemented by a grant from the European Commission including technical assistance.

Рђllianz Bank Bulgaria, majority-owned by Germany's Allianz Group has 100 branches and representative offices in the country. The loan is intended to enable ABB to provide mid-term financing of up to EUR 125 000 per client to SMEs, mainly for investment purposes.

James Hyslop, EBRD country director for Bulgaria, said the loan will support the Bulgarian private small business sector by facilitating access to finance. The SME sector remains a key driver for the vitality of the local economy. In recognition of this, EBRD will continue to support SMEs, especially during the current global financial crisis, and welcomes ABB's strategy to strengthen its focus on this sector, he added.

The EBRD is the largest investor in Bulgaria with over EUR 1.7 B committed to projects across the country. Working with its many partners, the Bank has mobilised more than EUR 6.2 B for projects in Bulgaria.

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