Bulgaria has secured a €250 million loan from the European Investment Bank (EIB) to co-finance priority projects supported by EU funds during the 2021-2027 programming period. The financing aims to advance developments in energy efficiency, transport, water management, and research, while also boosting economic growth, competitiveness, and living standards. This loan is part of a €1 billion financing facility approved by the EIB to support Bulgaria's efforts in implementing EU-backed initiatives.

The funding will enable Bulgaria to accelerate the absorption of EU grants, focusing on projects that contribute to the green transition, digitalization, and innovation. Key areas of investment include modernizing rail transport, improving wastewater treatment, enhancing energy efficiency in buildings and industries, supporting soil protection, and fostering business research. Smaller projects that do not meet the criteria for direct EIB financing are also eligible for funding under this tranche.

According to EIB Vice-President Kyriakos Kakouris, the loan will reinforce economic, social, and territorial cohesion in Bulgaria while enhancing the business environment, public services, and overall quality of life. This initiative is expected to play a pivotal role in the country's sustainable development and modernization.

The €250 million loan represents the first installment of the larger €1 billion structural loan program, which continues the EIB’s long-standing collaboration with Bulgaria. Previous agreements included €500 million in 2014 and €700 million in 2007, which funded projects to improve water supply systems, wastewater treatment plants, public transport in Sofia, and the expansion of rail and highway infrastructure. These efforts have significantly contributed to the modernization of Bulgaria's infrastructure and services.

The EIB, as the European Union’s lending institution owned by its Member States, finances investments aligned with EU policy goals. Its projects promote competitiveness, sustainable growth, innovation, and social cohesion while supporting the transition to climate neutrality. The EIB Group, comprising the EIB and the European Investment Fund (EIF), reported signing €1.11 billion in financing contracts for Bulgaria last year, more than doubling the €494 million figure recorded in 2022. Across 2023, the group’s total new financing projects amounted to €88 billion.

This latest partnership marks another step in the successful cooperation between the EIB and Bulgaria, ensuring the continued alignment of national priorities with EU objectives and furthering the country’s long-term development.

Source: EIB press release