BSTDB provides USD 1,5 million to “Unionbank” (Bulgaria) to promote trade in the Black Sea region
Press Release | 11-Apr-2001
The Black Sea Trade and Development Bank (BSTDB) will make available USD 1,5 million credit line to CB “Unionbank” (Bulgaria) in order to provide pre-export financing to Bulgarian exporting companies. “Unionbank” has been selected as a financial intermediary of BSTDB for its trade finance programme in Bulgaria. This facility is the second operation under the BSTDB trade finance programme in the country, after a similar loan agreement signed a month ago with the First Investment Bank, another BSTDB financial intermediary in Bulgaria.
CB “Unionbank” will use BSTDB’s credit line to provide Bulgarian companies with working capital necessary to produce and deliver goods under export contracts. The maximum tenor of financing under the facility will not exceed 180 days. In addition to receiving pre-export financing under the facility, Bulgarian exporters will be able to offer attractive deferred payment terms to their buyers, which will increase their competitiveness and stimulate regional trade. Promotion of export is an important tool to cut trade deficit and generate foreign exchange in Bulgaria.
CB “Unionbank” started operations as a commercial bank in 1994. The Bank’s customer base is primarily small and medium-sized enterprises. “Unionbank” participates in the SME financing programmes of international financial institutions, such as EBRD and KfW. In line with the Bank’s strategy to offer a wide range of services to its clients, the pre-export financing facility will expand its product line in financing of international trade.
Black Sea Trade and Development Bank is an international financial institution established by Albania, Armenia, Azerbaijan, Ukraine, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters is in Thessaloniki, Greece. The authorized capital of the Bank is SDR 1 billion (approx. USD 1,3 billion). The Bank supports economic development and regional cooperation by providing financing for projects and trade transactions to public and private enterprises in its shareholder countries. Trade financing is one of priority areas of the BSTDB activities. Since the commencement of operations in 1999, the total amount of 19 credit facilities approved by the BSTDB Board of Directors exceeded USD140 million. Of this amount, more than USD54.4 million is earmarked for trade financing. BSTDB has already provided pre-export financing through its financial intermediaries in Georgia, Bulgaria, Romania, Türkiye and Ukraine for the total amount of USD 30.4 million, and the Bank is negotiating similar agreements with leading commercial banks in other member countries.