DSK Bank, CIBANK to Provide Revolving Loan of BGN 80 M to Bulgaria’s FLAG Fund

Finance | May 29, 2015, Friday // 18:13|  views

Photo by eufunds.bg

DSK Bank and CIBANK will provide a revolving loan of BGN 80 M to the FLAG Fund (Fund of Local Government Authorities in Bulgaria).

The money will be used to finish municipal projects financed under operational programs “Environment” and “Regional Development” for the 2007-2013 programming period, according to a media statement of the Regional Development Ministry.

DSK Bank will provide a revolving loan of BGN 40 M in exchange for an interest of BGN 4.47 M, VAT excluded.

CIBANK will provide a loan of EUR 20 M in exchange for an interest of EUR 1.12 M, VAT excluded.

The contracts with the two contractors are yet to be signed.

The sum of BGN 80 M will go to the bridge financing of interim and final payments and the financing of the municipalities’ own contribution to the projects under these operational programs.

All of the agreed projects from the 2007-2013 programming period should be wrapped up and financially settled by end-2015.

The largest amount of funding will go to the completion of projects in the water sector.

A total of 11 projects in the water sector have been identified as being at risk and some of their components will not be wrapped up by end-2015, according to Environment Minister Ivelina Vasileva, as cited by mediapool.bg.

Apart from that, 3 projects in the waste management sector have been identified as being at risk.

At the same time, a total of 33 projects under the “Regional Development” program have been identified as being at risk, the largest of them being the Northern Speed Tangent (also known as Sofia Northern Bypass), according to Deputy Regional Development Minister Denitsa Nikolova.

Thanks to the two new loans, the capital of the FLAG Fund will reach BGN 320 M, including debt capital of BGN 226 M.

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Tags: FLAG Fund, operational program, Operational Program Environment, Operational Program Regional Development, 2007-2013, EU funding


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