Chinese bank grants 80-mln-euro loan to support projects in Bulgaria

SOFIA, May 12 (Xinhua) -- China Development Bank (CDB) here on Friday granted a loan of 80 million euros (about 86.88 million U.S. dollars) to support projects in Bulgaria, including those within the Belt and Road Initiative.

The loan agreement was signed by Angel Gekov, executive director of Bulgarian Development Bank (BDB), and Peng Jianxun, Vice President of CDB Chongqing Branch, BDB said in a statement on its website and confirmed in a phone conversation with Xinhua.

Chinese Ambassador to Bulgaria Zhang Haizhou and Bulgaria's Deputy Minister of Finance, Marinela Petrova, attended the signing ceremony.

The contracted funds would be used for providing investment and working capital loans as well as credit lines for Bulgarian companies, the statement said, adding that "resources can also be used by BDB to support strategic projects" within the the China-proposed Belt and Road Initiative.

The cooperation between the two banks dates back from 2009 when BDB received a 5-million-euro loan. This was the second loan extended by CDB to BDB.

BDB is a financial institution owned by the Bulgarian state. Its focus is to support small and medium-sized enterprises.