Bulgaria's FLAG Fund Restarts Payments under Projects Using "Environment" OP Funding

Bulgaria's FLAG Fund restores payments under existing loan agreements related to the implementation of projects under the "Environment" Operational Program.

The first step of Bulgaria's Fund for local authorities and governments (FLAG) will be to pay out BGN 14M, or the amount of payments requested in applications processed by Thursday.

The FLAG Fund will continue to process applications in the order of arrival, according to reports of the BGNES news agency.

The FLAG Fund suspended payments under projects on April 28, 2014 to preserve its loan portfolio after the European Commission froze payments to Bulgaria under the "Environment" Operational Program in November 2013.

On assuming office as caretaker Deputy Prime Minister and Regional Development Minister, Ekaterina Zaharieva spoke in favor of unfreezing the FLAG Fund as a financial instrument for providing low-interest loans in support of the implementation of EU-funded projects in Bulgarian municipalities.

Apart from that, a plan to increase the capital of the FLAG Fund is being drafted in a bid to boost funding opportunities for a larger number of projects.

"The resumption of payments under the FLAG Fund is a step towards restoring the confidence in institutions, minimizing risk of loss of EU funding under operational programs, saving the construction season, and guaranteeing the jobs of hundreds of construction workers," Zaharieva declared, responding to the latest decision of the FLAG Fund.

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