The European Investment Bank (EIB) is lending 500 million euro to Bulgaria to co-finance priority projects supported by EU funds during the 2014 – 2020 Programming Period, the EIB said on November 27.
The EIB loan will cover the national co-financing contributions under Operational Programmes in the areas of transport (including urban transport) and the environment.
“The EIB loan will co-finance priority projects with a total investment amount of 4.3 billion euro in Bulgaria,” EIB vice president László Baranyay said.
“This will accelerate the absorption of EU grants for the benefit of the national economy, strengthening its competitiveness and fostering economic growth and employment. The EIB lending is complementary to technical assistance provided by the EIB with a view to receiving EU grants,” Baranyay said.
The EIB financing will be provided in the form of a structural programme loan. Together with larger projects the EIB loan can also finance smaller schemes which, due to their limited size, would not qualify for direct EIB financing.
The EIB loan offers long-term co-financing on highly attractive terms for projects implemented under the EU programmes across Bulgaria, pre-financing EU grants where needed, the EIB said.
“This loan is a continuation of the successful financial co-operation between the EIB and Bulgaria,” according to the EIB.
In 2007 the EIB signed a similar loan of 700 million euro for EU fund co-financing. About 80 per cent of the envelope has been allocated.
(Photo: Bulgarian Finance Minister Vladislav Goranov, left, and László Baranyay, EIB Vice-President)