According to the Small Business Act (SBA) Fact Sheets, Bulgaria beats the EU average for Access to finance. However, Bulgarian stakeholders such as business associations still say access to finance is one of their main concerns. This apparent contradiction can be explained by the fact that some of the indicators here measure not the situation, but rather the change since last year. Going into detail, Bulgaria commands a good credit information system and only 13% of respondents said banks were less willing than before to provide a loan in 2011, against 27% in the EU as a whole. All other indicators (measuring the percentage of loan applications rejected, access to public financial support and the interest rate difference between small and larger loans) can be considered average or slightly better, with the exception of the share of working capital investment. Therefore, it can generally be said that Bulgarian SMEs enjoy a good climate with regard to access to finance, a very important factor in the current economic circumstances in Europe.
On the policy front, in 2011, the European Investment Fund (EIF) selected financial intermediaries for the Venture Capital Fund, the Growth Capital Fund, the Mezzanine Fund and the First Loss Portfolio Guarantee Financial Instrument. Following agreement with the EIF, the financial intermediaries will offer financing on preferential terms to over 3 400 SMEs across Bulgaria. The total amount available is EUR 400 million. Both start-ups and existing enterprises that plan to expand their businesses will be eligible.
Research, articles etc.
|Key indicators on access to finance|
Source: Chart compiled using ECB data
Note: Loan volumes and interest rate data for 2012 are to the period September 2012 only (due to data availability as at November 2012).
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Source: Chart compiled using AECM data
Download data [139 KB]
Source: Chart compiled using EVCA data
Download data [191 KB]
|Business angels finance|
Source: Chart compiled using EBAN data
Download data [97 KB]
Appendix: ACTIONS SUPPORTING ACCESS TO FINANCE FOR SMEs [320 KB]