BSTDB Builds up its Trade Finance Program in Bulgaria

Press Release | 05-May-2004

BSTDB will make available Euro 5 million credit line to Encouragement Bank AD (Bulgaria) in order to provide pre-export financing to Bulgarian companies exporting goods to other countries of the Black Sea region and beyond. The tenor of this revolving and committed credit facility is 360 days.

Encouragement Bank AD has been selected as a financial intermediary of BSTDB for its trade finance program in Bulgaria. This facility is the fourth operation under the BSTDB trade finance program in the country, after similar loan agreements signed with First Investment Bank, CB Unionbank and CB Allianz Bulgaria.

Encouragement Bank AD is a state owned Bulgarian bank established in 1999 with a mandate to support the implementation of the national economic policy by financing business projects of small-and medium-size enterprises (SME), as well as developing their export potential.

Black Sea Trade and Development Bank (BSTDB) 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. 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 BSTDB Board of Directors approved 25 trade finance facilities for about USD 160 million. The bank's trade finance program is being implemented through selected local financial intermediaries in Azerbaijan, Georgia, Bulgaria, Romania, Russia and Türkiye, and the Bank aims to further develop its program in cooperation with leading commercial banks in all member countries.