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Bulgarian Development Bank AD, Bulgaria      Member  Bulgarian Development Bank AD (BDB) was established as an economic growth contributing institution after the adoption of a special law by the Parliament of the Republic of Bulgaria in April 2008. Its role is to implement the economic development policy of the Bulgarian State and promote and support the establishment and development of SMEs in Bulgaria. In 2008 BDB was also entrusted by the Government with the implementation of one of the measures in support of the Bulgarian SME sector to fight the global crisis (through on-lending program providing global loans to BG commercial banks for their SME activities). History: Bulgarian Development Bank AD is the successor of Encouragement Bank AD which was incorporated in 1999 as a fully state-owned institution with the special purpose of providing in priority medium and long-term financing to the Bulgarian small and medium-sized enterprises and of promoting Bulgarian export. Legal status and shareholders: BDB functions as a joint stock company, entirely owned by the Ministry of Finance of the Republic of Bulgaria. Target group: Bulgarian Development Bank AD is unique on the local bank operating as Bulgaria’s specialized vehicle for SME financing. The Bank rather complements the financial market providing SME financing in niches that are not so developed and too risky for the other commercial banks. Activities: The main activities of the BDB are as follows: - Direct lending – BDB provides directly long-term investment loans and loans to promote export activities of Bulgarian SMEs. - On-lending - BDB provides second floor loans to Bulgarian commercial banks since 2001 when it was entrusted with the management of a KfW SME financing loan. The Bank will operate the 2008-2009 Government Programme to enhance SME financing through the commercial banks in Bulgaria. - Provision of guarantees - Pursuant to the Law on BDB, a National Guarantee Fund was registered in September 2008 as a daughter company of the BDB. The products offered by the NGF are: guarantees for loans with less collateral than general banking requirements (to be provided to commercial banks with SMEs as final beneficiaries) and guarantees for micro-loans. International cooperation and affiliations: To provide the necessary financial support for the accomplishment of its business development objectives BDB uses its own funds and the funds attracted from the international institutions. In the field of SME support and access to finance BDB AD cooperated with the European Investment Bank, the European Investment Fund, the Council of Europe Development Bank, the Nordic Investment Bank, KfW, Dexia Kommunalkredit bank, Depfa Investment Bank, Japanese Bank for International Cooperation. BDB is a shareholder in the European Investment Fund since 2004. The Bank is a member of the Club of Institutions of the EU Specializing in Long-Term Credit (observer status), the European Associations of Public Banks and the Network of European Financial Institutions for SMEs. printversion