Summary of the activity of JEREMIE in Bulgaria in 2014.

Key highlights of 2014:

  • EUR 628 million of loan and equity investment portfolio committed to more than 6,247 Bulgarian SMEs by end-2014, translating into a leverage ratio of 1.8x for each 1 EUR of public funds contributed through the JEREMIE Initiative.
  • More than 7,300 individual SME financing operations supported.
  • Absorption of JHF funds stood at 71.5% as of end-2014 – the totality of the JHF funds has been committed to operations.
  • In 2014, the SME lending activity under the Portfolio Risk Sharing Loan (PRSL) further accelerated with 86% growth of signed SME loan amount YoY. A total of EUR 317m was committed to 2,177 SMEs representing 81% of total budget of the instrument.
  • Close to full absorption of the original budget of the First Loss Portfolio Guarantee product, together with high market demand by SMES, led to a decision to allocate additional EUR 12m of JHF resources to the instrument in 2014 that along with leverage effect of 5 times is expected to provide additional EUR 60m of guaranteed SME loans in the course of 2015.
  • Further negotiations for a financial commitment to the Mezzanine Fund instrument were suspended due to shortening of the prospective investment period; the original budget of EUR 30m for the instrument was reallocated to other operations with financial intermediaries in JHF portfolio.
  • Effective start of the two equity funds under the Co-Investment Fund(s) instrument brought the number of equity operations to five in total.
  • On 24th of October, 2014 the Government of the Republic of Bulgaria, represented by the Ministry of Economy and Energy and EIF signed an extension of the term of EIF mandate for management of JEREMIE Holding Fund beyond the original deadline 31st of December, 2015. Under the Third Amendment Agreements of the Framework and Funding Agreements, which are set to enter into force on 30th of June, 2015, EIF will continue to act as a sole shareholder of JEREMIE Bulgaria and to manage the portfolio of underlying operations for the benefit of the Republic of Bulgaria until 31st of December, 2025.

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