The National Guarantee Fund (NGF) was established in 2008 with the Bulgarian Development Bank (BDB) as the sole owner of its capital. The Fund is an established guarantee institution and a leader in providing portfolio guarantees for its own risk in support of small businesses. The company plays an important role in supporting small and medium-sized enterprises by providing loan guarantees, allowing businesses to obtain financial assistance at a lower risk to lenders. Its main mission is to promote the sustainable development of small and medium-sized enterprises, remove economic barriers, and fully develop entrepreneurial potential.
The growth of the guaranteed portfolio can be linked to various factors, such as the increase in investment, supporting innovation, and expanding access to finance for companies in the country.
According to the European Association of Guarantee Institutions (AECM) annual report, based in Brussels, the NGF is almost at the top (second in the ranking), after a 98.8% growth of the guaranteed portfolio. This percentage seems even more impressive when compared to the average increase of 4% for the 45 companies from 31 countries that are members of the European Association.
The reported data show that in the past year, the NGF has supported nearly 2,000 small companies, which have received loans worth a total of BGN 471 million. The growth has been gradually increasing during the year – by the end of the first half of the year, the number of supported companies was over 1,500, and the total amount of financing was BGN 320 million.
The report also shows that there is a clear tendency towards a shift towards investment capital loans and a corresponding decrease in working capital loans.
Small and medium-sized companies in Europe are shifting towards long-term investments, which is a sign of a drive for future growth and lasting stability.
To summarise the Fund’s activities, since its inception, the Fund has supported over 13,000 companies and issued guarantees to businesses worth BGN 1.4 billion.
From the business point of view, this is a resource of over BGN 3.5 billion. The guarantees are an important part of the collateral, as they also contribute to easing the terms of the loans.
According to statistics, every fifth of small and medium-sized enterprises in Bulgaria use the support of the NGF to obtain financing.