Bulgarian Development Bank to offer interest-free COVID-19 loans
The Bulgarian Development Bank has announced the mechanism, conditions and procedure for financing individuals under the Interest-Free Credit Guarantee Program to help people who have lost work because of the COVID-19 pandemic.
The program is one of the Bulgarian government’s anti-crisis measures aimed at protecting self-employed and employed people during the emergency situation. It will support the individuals affected by the pandemic’s economic impact, who must meet the following conditions:
People with employment contract should have ceased performing paid labour and be on unpaid leave due to the pandemic; be a party to a legal employment relationship during the last six months before taking unpaid leave; not receive remuneration for other legal employment relationships; and have worked at least five business days in March, if this is the month in which they are put on unpaid leave.
Self-employed people should have interrupted their self-employment activities and/or have suffered at least a 20% decline of their income for the first quarter of 2020 compared to the first quarter of 2019, as a result of the pandemic; and not receive remuneration for other legal employment relationships.
The maximum loan amount stands at BGN4,500 ($2,700), and the loans are interest free. The maximum repayment period is five years, with a grace period of minimum of six months and maximum of 24 months.
