Bulgarian Development Bank

Bulgarian Development Bank, Bulgaria


General information

Bulgarian Development Bank (BDB) was established as an economic growth contributing institution after the adoption of a special law by the Parliament of the Republic of Bulgaria in April 2008.

BDB seeks to be a modern banking institution, which makes full use of its unique position in the local banking market to implement the state policy in the Bulgarian economy as the main focus of the bank are local SMEs, project financing for export-oriented companies, as well as investment banking and public projects of national importance.

BDB is unique on the local bank market operating as Bulgaria's specialised vehicle for SME financing. The Bank rather complements the financial market providing SME financing in niches that are not so developed and too risky for the commercial banks.

BDB has the following main objectives:

  • Improvement, stimulation and development of the overall economic, export and technological potential of SMEs by facilitating their access to finance;
  • Implementation of schemes and instruments for financing public investments and development projects which are of significance to the national economy;
  • Acquisition and management of mid-term and long-term local and foreign resources necessary for realisation of the country's economic policy.

For the performance of its tasks and objectives, BDB has established a bank group of its own, which comprises of:

  • Bulgarian Development Bank
  • National Guarantee Fund
  • JOBS Micro Financing Institution 

At the end of 2013 the assets of BDB amounted to EUR 921 million and the number of employees was 157.

BDB has an investment grade rating equal to the rating of the Bulgarian state.


BDB is the successor of Encouragement Bank AD which was incorporated in 1999 as a fully state-owned institution with the special purpose of providing in priority medium and long-term financing to the Bulgarian SME's and of promoting Bulgarian exports.


The main activities of the BDB are as follows:

  • Direct lending – BDB provides direct long-term investment loans and loans to promote export activities of Bulgarian SMEs;
  • On-lending - BDB provides second floor loans to Bulgarian commercial banks since 2001 for medium and long-term financing of Bulgarian SMEs;
  • Provision of guarantees - a National Guarantee Fund (NGF) was registered in September 2008 as a daughter company of BDB. The products offered by the NGF are: guarantees for SME loans with less collateral than general banking requirements (to be provided to commercial banks) and guarantees for micro-loans.
  • Provision of micro-financing – JOBS MFI provides long-term financial solutions to micro enterprises, including start-ups, improves their access to financing and contributes to the creation and maintenance of jobs. The company provides micro-loans and micro-leasing facilities through its nationwide business network of intermediaries.

A Capital Investments Fund is envisaged to be established in order to provide a platform for the financing of existing enterprises and start-ups by investing in their capital.

International cooperation

To provide the necessary financial support for the accomplishment of its business development objectives BDB uses its own funds and the funds attracted from the international institutions.

In the field of SME support and access to finance BDB cooperates with the European Investment Bank, the Council of Europe Development Bank, KfW and the European Investment Fund.

BDB is a shareholder in the European Investment Fund since 2003. The Bank is a member of the European Association of Long-term Investors, the European Associations of Public Banks and the Network of European Financial Institutions for SMEs.


Mrs. Zaharina Todorova – Deputy Head of International Financial Institutions and European Funds (IFIs & EF)

1, Dyakon Ignatiy Street
1000 Sofia, Bulgaria
Tel: +359 2 9306 331
Fax: +359 2 9306 321
E-mail: external_financing@bdbank.bg