The Maritime and Fisheries Program provides BGN 5.4 million for a new financial instrument
Enterprises in the fisheries sector will have access to loans financed through the Fund of Funds (FF). For this purpose, the Maritime Affairs and Fisheries Program 2014-2020 (MAFP) in Bulgaria, co-financed by the European Maritime Affairs and Fisheries Fund, provides BGN 5.4 million.
The agreement concluded between the FF and the Managing Authority of the MAFP provides for the market to offer two financial products – low-interest loans and collateral for loans provided by commercial banks. Both types of loans will be granted for self-financing of projects under the MAFP or in addition to projects approved for grants under the program.
Investments in fisheries and aquaculture, as well as in the processing of fishery and aquaculture products will be financed in order to reduce the negative impact on the environment and increase resource efficiency. The funds can also be used to support project proposals for the implementation of local development strategies and the improvement of economic and social well-being in fishing communities.
The new financial products will facilitate access to finance for businesses in the sector by offering preferential conditions: lower interest rates, simplified collateral requirements, extended grace periods.
The guarantee product will secure up to 80% of each loan granted by an intermediary bank, but not more than BGN 1 million.
Risk-sharing loans can be provided both for investment purposes (up to BGN 500 thousand) and for working capital (up to 30% of the amount of the investment loan). For these loans, the amount of funds from the Fund of Funds will be up to 50% when they are granted in addition to a grant, and up to 70% when the projects are financed only with a loan. The part of the loans financed by the Fund will be interest-free, which will lead to general interest rates significantly lower than the market ones.
The FF will attract additional private funding to the funds provided by the MAFP, with which the total amount of monetary resources available to final recipients will exceed BGN 8 million.