To lend a hand to Bulgarian companies that would vie for Iraq reconstruction contracts,
the Bulgarian Industrial Association (BIA), Roseximbank and insurer DZI started a guarantee fund.

According to the initiators, the financial guarantees required in the tender procedures could be the main hurdle for Bulgarian companies otherwise capable of carrying out the commissions and experienced in working in Iraq.

The financial guarantees of the fund create opportunities for Bulgarian enterprises to apply for subcontractors in both deliveries and main works in infrastructure projects, hospitals, schools and humanitarian commissions.

The Bulgarian Finance Ministry hailed the creation of the fund built entirely by private capitals. It found the intention of the fund initiators to cover the good performance guarantee of Bulgarian subcontractors in middle terms "exceptionally useful."

The ministry also outlined the usefulness of the opportunities provided by the fund for insurance and re-insurance of secured contracts.

The fund is open to other business players and financial institutions that would wish to join it.

According to Bulgaria's Finance Minister Milen Velchev, this is the ideal option for support of Bulgarian businesses as the state suffers financial limitations and currency board.

Over the last weeks, US companies to be involved in the reconstruction announced heavy financial requirements for subcontractors. Bechtel Group in particular demanded that the Bulgarian companies in question have a turnover of over USD 20 M.