Bulgarian Development Bank provides BGN 20 mln. to support Bulgarian oil-bearing rose processors

The Bulgarian Development Bank (BDB) has launched a programme "Support for Oil-bearing Rose Processing" with preferential terms for saving the traditional business for the country.

The Bank will continue to create new products to help Bulgarian small and medium sized enterprises in various sectors, the Minister of Innovation and Growth, Daniel Lorer, said on January 24 at a briefing with the Minister of Agriculture Ivan Ivanov and the executive directors of BDB Vladimir Georgiev and Tsanko Arabadzhiev.

According to Lorer, the support of the micro, small and medium-sized companies, which are in difficult position, is part of the updated strategy of the BDB Group.

"It reaffirms the bank's priorities for faster recovery of SMEs, accelerating economic growth and job creation after the COVID-19 crisis," said the Minister of Innovation and Growth.

The bank will provide working capital financing to micro, small and medium-sized companies in the rose processing sector, which are facing serious difficulties and reduced liquidity.

The volume of the programme is BGN 20 million. Direct loans of up to BGN 1 million with a term of up to 3 years, a simplified financing scheme and minimum collateral requirements, incl. pledge of rose oil.

Bulgarian rose oil is famous for being one of the most sought after and expensive on the international market, but in recent years the industry has faced problems that lead to the accumulation of large stocks of the valuable product.

Among the reasons are the competition of manufacturers from neighbouring countries, which export at lower prices, as well as the weakened interest in high-end cosmetics and perfumes due to the Covid-19 pandemic. The sector is also hampered by pro-inflationary pressures - rising labour costs, electricity and fertilizer prices.

After analysis of the problems and needs of processors of oil-bearing rose flowers in Bulgaria, BDB will assist in saving the traditional business for the country.