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Sat, Feb 04 2012
Quick and easy microloans for SMEs
Fast and flexible loan disbursement for the needs of micro, small and medium enterprises is the central goal in ProCredit Bank's mission on the Bulgarian market, said the founders and shareholders of the new institution at the official opening of the bank last Thursday.
ProCredit Bank was founded on June 6 and filed its application for licence on June 21. Within three months, members of the board of directors Petar Slavov and Christoph Freytag received the bank's licence to operate on the Bulgarian market. The board consists of Slavov, managing director Freytag, and Guy De Roeck.
The International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), Deutsche Investitions-und Entwicklungsgesellschaft GmbH (DEG), Commerzbank and Internationale Micro Investitiones Aktiengesellschaft (IMI) hold equal shares of 20 per cent of the initial 12 million leva capital.
All founding institutions have set a goal to stimulate the local economy by fostering competitive entrepreneurship and helping the transition and economic reform with extensive know-how.
The development-oriented financial institutions like IFC, EBRD and DEG, as well as the private investors such as Commerzbank and IMI, have accumulated much experience in the field of microfinancing through setting up similar banks in Georgia, Russia, Ukraine, Yugoslavia, Albania and Kosovo. Those banks are partners of ProCredit Bank abroad.
As part of an aggressive expansion policy, the bank will soon open branches in Plovdiv, Bourgas, Varna and Pleven. In the next five years, 20 branches will be set up in major cities throughout Bulgaria.
The management of the bank lists as advantages of its service fast and flexible microlending, European standards in banking, credit packages tailored to small business needs and a Western-trained team.
"Our premises are open, free and accessible like our services," said Freytag. Its new glass-and-marble office is on 131 Hristo Botev Boulevard. "It is so exciting that the building is what we want our bank to be - open, transparent and friendly," added Elizabeth Wallace, a representative of the European Bank for Reconstruction and Development (EBRD).
"We try to find ways to give credit, not to refuse credit," Wallace explained. Part of the bank's unique scheme of microlending is to evaluate the potential of the business and not to look for guarantees. "We are here to look at the character of the entrepreneur, at their dreams and ambitions. Our job is to see what they can do with their hands," she said.
ProCredit Bank also has a non-standard approach in assessment of credit reliability. Loan officers base their analysis on assessment of cash flows, not on documents. They also visit the premises of the applicant to evaluate the prospective of the business to expand and develop, and the owner to repay the loan.
Fast decision-making on loan applications is one of the key elements in the credit technology of the bank. Businesspeople who apply for a loan and submit all necessary documents can get the money from two to 14 days after the application.
"We have to be quick, we understand it perfectly, otherwise we will be out of the market," Freytag said, and described the process of concluding the loan contract as a "short and practical agreement." He added that it is the bank's hope to build long-term partnerships with loyal customers.
The loan products offered fall into three groups - Dynamo ProCredit, Business ProCredit and Investment ProCredit. Dynamo loans are from 100 to 10,000 leva, the term for repayment is two to 12 months with 1.65 per cent monthly interest. Business and Investment packages have up to three years and up to five years repayment terms respectively, with 12-17 per cent annual interest rates. Both types of loan can reach up to 250,000 leva.
Klaus-Peter Zeitinger from IMI explained that the bank will not lend money to starting businesses and will not finance ideas. A requirement is that the business should have at least three months experience on the market for a Dynamo credit and six months for a Business or Investment credit.
Wallace said that for the first four working days of the bank, 270 applications were received for credits, 90 of those were processed and approved and 56 clients walked out of the bank with loans. She added that this was achieved without advertising.
Although focusing primarily on microlending, the bank offers a number of other services such as payments, current accounts, saving accounts and foreign currency exchange operations. Services planned for the future include client depository safes and Western Union money transfers.
In the field of international payment, letters of credit, and bank guarantees, ProCredit Bank will use the extensive experience and network of one of its shareholders, Commerzbank.
ProCredit Bank was founded on June 6 and filed its application for licence on June 21. Within three months, members of the board of directors Petar Slavov and Christoph Freytag received the bank's licence to operate on the Bulgarian market. The board consists of Slavov, managing director Freytag, and Guy De Roeck.
The International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), Deutsche Investitions-und Entwicklungsgesellschaft GmbH (DEG), Commerzbank and Internationale Micro Investitiones Aktiengesellschaft (IMI) hold equal shares of 20 per cent of the initial 12 million leva capital.
All founding institutions have set a goal to stimulate the local economy by fostering competitive entrepreneurship and helping the transition and economic reform with extensive know-how.
The development-oriented financial institutions like IFC, EBRD and DEG, as well as the private investors such as Commerzbank and IMI, have accumulated much experience in the field of microfinancing through setting up similar banks in Georgia, Russia, Ukraine, Yugoslavia, Albania and Kosovo. Those banks are partners of ProCredit Bank abroad.
As part of an aggressive expansion policy, the bank will soon open branches in Plovdiv, Bourgas, Varna and Pleven. In the next five years, 20 branches will be set up in major cities throughout Bulgaria.
The management of the bank lists as advantages of its service fast and flexible microlending, European standards in banking, credit packages tailored to small business needs and a Western-trained team.
"Our premises are open, free and accessible like our services," said Freytag. Its new glass-and-marble office is on 131 Hristo Botev Boulevard. "It is so exciting that the building is what we want our bank to be - open, transparent and friendly," added Elizabeth Wallace, a representative of the European Bank for Reconstruction and Development (EBRD).
"We try to find ways to give credit, not to refuse credit," Wallace explained. Part of the bank's unique scheme of microlending is to evaluate the potential of the business and not to look for guarantees. "We are here to look at the character of the entrepreneur, at their dreams and ambitions. Our job is to see what they can do with their hands," she said.
ProCredit Bank also has a non-standard approach in assessment of credit reliability. Loan officers base their analysis on assessment of cash flows, not on documents. They also visit the premises of the applicant to evaluate the prospective of the business to expand and develop, and the owner to repay the loan.
Fast decision-making on loan applications is one of the key elements in the credit technology of the bank. Businesspeople who apply for a loan and submit all necessary documents can get the money from two to 14 days after the application.
"We have to be quick, we understand it perfectly, otherwise we will be out of the market," Freytag said, and described the process of concluding the loan contract as a "short and practical agreement." He added that it is the bank's hope to build long-term partnerships with loyal customers.
The loan products offered fall into three groups - Dynamo ProCredit, Business ProCredit and Investment ProCredit. Dynamo loans are from 100 to 10,000 leva, the term for repayment is two to 12 months with 1.65 per cent monthly interest. Business and Investment packages have up to three years and up to five years repayment terms respectively, with 12-17 per cent annual interest rates. Both types of loan can reach up to 250,000 leva.
Klaus-Peter Zeitinger from IMI explained that the bank will not lend money to starting businesses and will not finance ideas. A requirement is that the business should have at least three months experience on the market for a Dynamo credit and six months for a Business or Investment credit.
Wallace said that for the first four working days of the bank, 270 applications were received for credits, 90 of those were processed and approved and 56 clients walked out of the bank with loans. She added that this was achieved without advertising.
Although focusing primarily on microlending, the bank offers a number of other services such as payments, current accounts, saving accounts and foreign currency exchange operations. Services planned for the future include client depository safes and Western Union money transfers.
In the field of international payment, letters of credit, and bank guarantees, ProCredit Bank will use the extensive experience and network of one of its shareholders, Commerzbank.
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Appointments
British Council
Lyubov Kostova was appointed country manager of British Council Bulgaria effective January 1, replacing Tony Buckby, who left in October 2011 to take a similar position at British Council Greece. Kostova has been with British Council Bulgaria for 11 years, as public communications manager and, since 2008, as the head of project and partnerships department. Prior to joining the British Council, Kostova was head of international activities at the National Academy for Theatre and Cinema Arts (NATFIZ). She has a degree in Indian studies from Kliment Ohridski Sofia University.
CEZ
Stefan Apostolov is the new chief executive of CEZ Razpredelenie Bulgaria, the power transmission subsidiary of Czech energy company CEZ in the country. He replaces interim chief executive Ales Damm, who remains the chairperson of the CEZ Razpredelenie management board. Apostolov has 30 years of experience in the energy sector, joining CEZ in 2007 as director of customer service and was later appointed as head of business development. Apostolov has a master's degree in electric systems from the Belorussian National Technical University in Minsc, management diplomas from Open University London and New Bulgarian University, as well as a master's degree in business administration from Plovdiv University.
Rompetrol Bulgaria
Alexander Albin has been appointed chief executive of fuel distributor Rompetrol Bulgaria, replacing Nichita Sorin, who left to become chief executive of Rompetrol Gaz in Romania. Albin was previously chief executive of Rompetrol Georgia. He has more than 15 years of experience in the oil and gas industry; prior to joining Romania's oil group Rompetrol in 2008 as an adviser, he oversaw operations at Atyrau refinery in Kazakhstan, owned by Rompetrol's parent company KazMunaiGaz. He previously held top management positions at two other leading Kazakh oil and gas companies.
BASF Bulgaria
Valentina Dikanska is the new general manager of chemical industry giant BASF subsidiary in Bulgaria, taking over from Herbert Fisch, BASF vice president for Southeastern Europe. Dikanska, who started her career as an expert in the Finance Ministry, joined BASF Bulgaria as director of finance and administration in 2002. She becomes the first Bulgarian to hold the top management position in the company in its 40-year history on the Bulgarian market. Dikanska holds a master's degree in economics from the University for National and World Economy in Sofia.
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