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1.5 billion euro from China will be used to extend cheaper loans

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1.5 billion euro from China will be used to extend cheaper loans

Bulgarian Development Bank (BDB) and its Chinese counterpart have agreed that 1.5 billion euro that Beijing has granted for Bulgaria will be used to extend lower-interest-rate loans to local businesses. This was announced in an interview with BDB executive director Stoyan Mavrodiev for the "Benovska Asks" television talk show.
Here are some parts of the interview:
- Have we done enough to deserve the 1.5 billion euro, which you signed for?
- What happened at the signing ceremony at the Council of Ministers building, where I, as the chief executive director of BDB, and my counterpart from the China Development Bank Mr. Huaibang Hu, was the final phase of an effort that lasted 7-8 months and was achieved in several mutual visits. This is a grand, unprecedented achievement not only for the Bulgarian Development Bank but also for the entire banking sector in Bulgaria. Signing a 10-year credit line with unusually favourable features, much lower interest rates, compared to the bond market in London – this is an achievement. Better than us having to issue corporate bonds in London.
- What kind of projects will be funded with this 1.5 billion euro?
- China devoted a total of 2 billion euro for the entire Central and Eastern Europe to fund various projects. We receive 75% of the money, and the remaining 25% are for the other 15 countries of the region. This is a very well achieved result. We even had some discussions with our counterparts from Hungary, Serbia and Slovenia, and they asked us with envy: How did you do it?!
- And how did you do it? Because I read of an opposite version of events that Bulgaria was only getting 2% of all money...
- These are the numbers that the Chinese themselves announced – 2 billion euro for funding all kinds of projects by development banks – 1.5 of them are designated for the BDB. This has been officially signed in an agreement. The money will be invested in good projects, and not only by medium- and small-sized enterprises but also in large projects that will be profitable. (...) Any project, no matter if it is drafted by a small enterprise, a start-up company, by a medium or large business, will be supported by the BDB, if it is in line with the standards and regulations of the bank.

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