Bulgaria's government is going to inject BGN 500 M into the country's commercial banks by the end of March, 2009, using credit lines of the Bulgarian Development Bank.

This became clear Monday as the Bulgarian Prime Minister Sergey Stanishev presided over a working meeting of government and banking officials, which discussed the readiness of the Bulgarian Development Bank (BDB) to provide the commercial banks with credits amidst the raging global financial crisis.

BDB has already signed contracts for providing credit for over BGN 230 M with twelve commercial banks. Its Executive Director, Dimitar Dimitrov, announced that BDB had financed projects for over BGN 43 M in less than a month, and that all of the BGN 500 M envisaged for credits should reach the beneficiaries by the end of March.

The money will be used for medium-term and long-term investment credits, pre-expert financing, and co-funding of projects of small and medium sized enterprises already financed by EU structural funds.

Bulgaria's Prime Minister Sergey Stanishev said the government was ready to allocate additional funds to the BDB if it needed them for anti-crisis measures. He pointed out the Bulgarian state had the necessary financial resources for such policies thanks to the fiscal reserves accumulated in the recent years.

The BDB is also working on an additional anti-crisis measure which will support the agricultural producers by providing the commercial banks with money for agricultural credits. The sum for this purpose is expected to be about BGN 100 M.

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