MIG: BGN 2 billion public resource will be managed by the Fund of Funds during the new program period

During the next program period until 2027, "Fund Manager of Financial Instruments in Bulgaria" EAD (Fund of Funds) will manage BGN 2 billion of public resources. A significant amount of private co-financing will be added to it, with which the financial resources can reach BGN 4 billion. Nikolay Genchev, a member of the newly appointed Supervisory Board of the Fund of Funds, whose principal is the Ministry of innovation and growth.

Since its establishment in 2015, the Fund has supported over 2,500 projects of companies and municipalities. Behind them are equity investments in over 200 innovative startups, nearly 700 microloans for small businesses and social enterprises, almost BGN 500,000 in credit financing for regional and municipal projects, BGN 540 million for 1,300 small and medium-sized enterprises to overcome the consequences from the COVID-19 pandemic, etc.

There are nearly BGN 600 million of free resources from the old program period for financing businesses and municipalities in various forms. The remaining funds to be used next year are BGN 200 million for equity investments through the five funds that are in the MIG system, BGN 200 million for debt financing through the seven banks with which the Fund works, 150 BGN million for financing municipal projects, BGN 75 million for agriculture, about BGN 120 million for municipalities, as well as a significant resource for business microcredits. To access this resource, beneficiaries should visit the website of the Fund of Funds (Fund Manager of Financial Instruments in Bulgaria | FMFIB) and contact its experts who will direct them to the appropriate instruments, banks or fund managers. In addition to the listed beneficiaries who can receive support from the Fund, it can provide assistance, through a financial intermediary, and only for an idea of a person who still wants to develop his own business. Funding can start from 50,000 euros and reach up to 1 million euros. In this way, more than 200 startups in Bulgaria have already been financed.

"During the current program period, the Fund has a total of BGN 1.2 billion in public resources (European and national) and another BGN 1 billion in private co-financing, or a total of BGN 2.2 billion, which have already reached the final are beneficiaries," Genchev also pointed out.

He emphasized that in order for companies, municipalities, startups and other possible beneficiaries to use this resource, they should ask at the bank branches of the banks serving them about the instruments of the Fund of Funds, as well as read more on the Fund's website.

We remind you that on November 16 of this year Minister of Innovation and Growth Alexander Pulev appointed three members of the Supervisory Board of the company, including Nikolay Genchev. This happened in implementation of the Decision of the Council of Ministers dated October 5, 2022 to change the statute of "Fund Manager of Financial Instruments in Bulgaria" EAD and switch from a single-level form of management - management board - to a two-level - management and supervisory boards. The appointment was another step in the process of introducing clean and transparent policies at the Fund of Funds and in line with industry best practices.

The task of the Fund of Funds is to structure and manage financial instruments under the various European programs. The final beneficiaries of the funds received from the Fund can be, in addition to various businesses - start-ups, small, large, expanding, as well as municipalities, regions, water and sanitation companies throughout the country, agricultural producers, small and family businesses, etc.

A large part of the resource of the Fund of Funds for the new operational period was provided by MIG under the program "Innovation and competitiveness in enterprises", which was sent for approval in Brussels on 16 August and confirmed on 3 October 2022, within the mandate of The office. The money will be invested by the Fund of Funds in the form of various financial instruments to support businesses, municipalities, farmers, startups, etc.

More information on the appropriate financial instruments for different sectors of the economy - guarantees, loans, grants, equity instruments, etc. - can be found both on the website of the Fund of Funds - Fund manager of financial instruments in Bulgaria | FMFIB, as well as on the website of the Ministry of Innovation and Growth - Ministry of Innovation and Growth of the Republic of Bulgaria (government.bg).