Bulgaria to set up guarantee fund to ensure agriculture funds absorption
2011-11-21 11:40:39
Bulgaria's Government mulled setting up a guarantee fund to ensure the absorption of financing under the EU's Rural Development operational programme, the Agriculture Ministry said on November 17 2011.
The fund will be managed by Bulgarian Development Bank (BDB), the statement said.
The Ministry has already held talks with EU Agriculture and Rural Development Commissioner Dacian Ciolo? and Bulgaria's Prime Minister Boiko Borissov on the matter.
Because of the poor absorption of funds under the programme, there was a risk for Bulgaria to lose money earmarked under the scheme, since financing allocated in the programme's 2009 budget should be used in up to two years, meaning by the end of 2011.
According to sources at the ministry, the guarantee fund will amass funds which the country fails to absorb by end-2011. The financing will be used for supplements to collateral for loans granted by banks to projects under the programme and as counter-guarantees on advance payments.