CDB provides EUR 5 million loan to Bulgarian Development Bank for on-lending to SMEs (Linked to Record ID#42175)

Project narrative

On October 15, 2009, the state-owned Bulgarian Development Bank (BDB) announced that China Development Bank would extend it two credit lines worth a combined EUR 35 million ($52.3 million). The value of the first credit agreement (captured in Record ID#42174), which was signed on October 15, 2009, was EUR 5 million and it was signed Dimitar Dimitrov and Sasho Tchakalski, Executive Directors of BDB, and by Zhao Jianping, Assistant Governor of China Development Bank. Boiko Borissov, Prime Minister of Bulgaria and Xi Jinping, China’s Vice President, were also present at the signing ceremony. The proceeds from this credit line were to be used by the borrower to issue long-term loans to small and medium-sized enterprises (SMEs). The borrowing terms of this credit line are unknown. However, it is known that no sovereign guarantee was issued in support of the credit line. The second credit agreement (captured in Record ID#42175), which was worth EUR 30 million, was expected to be signed in November 2009. However, it does not appear that it was ever finalized.