Landowners and farmers can receive special loans through a US Agency for International Development (USAID) programme.

UniCredit Group banks opened special payment accounts for agricultural landowners in connection with receiving special subsidies from the European Union as part of the plan for paying for separate arable land, the banking group said in a media statement on April 16.

The opening of a payment account in the name of every registered producer is a compulsory condition for acquiring the EU subsidies.

Accounts can be opened anywhere in the branch network of Bulbank, HVB Bank Biochim and Hebrosbank, all members of the UniCredit group.

Preferential conditions will remain valid throughout the branch system even after the three banks merge at the beginning of May 2007, which will create the strongest Bulgarian bank UniCredit Bulbank, as reported by The Sofia Echo on April 13.

Opening an account does not require a minimum balance and there will be a minimum maintenance charge of one lev or euro depending on the currency in which an account is denominated. The account will attract one per cent interest a year for amounts of more than 1000 leva or euro.

The media statement said that an advantage for agricultural producers of using an UniCredit Group bank is the opportunity for preferential investment loans by people working in the agricultural field. Such loans have become possible after a contract agreement between Hebrosbank and USAID for $10 million. The maximum loan amount is $750 000 with a term up to four years, while interest will be subject to negotiation. Financial security will be arranged according to Bulgarian law.

The contracted agreement with USAID is also in effect at UniCredit Bulbank. The agreement foresees USAID guarantee amounting at 50 per cent of every loan, which reduces risk and loan repayments.

The UniCredit Group banks announced on April 17 that retailers who install point-of-sale (POS) devices will be freed from monthly rents and taxes and need not pay turnover commission up to the end of June 2007. Through POS devices installed by UniCredit Group banks at pay points in their shops, companies can accept payments with BORIKA and Maestro cards, all Visa cards (including chip cards) and MasterCard. Using a POS-device, clients can use their cards to pay directly at shop pay points.

“The POS devices help the sales when the client does not have cash. Tourists and foreigners could also be attracted as clients, and in addition the firm saves costs on security guards and turnover collection,” said Slavka Vulkova, a UniCredit Group bank representative in charge of the card business.

Bulbank, HVB Bank Biochim and Hebrosbank will install POS devices free of charge for their clients, as well as train staff for free and supply commercial outlets with free stickers informing about card acceptance, free service and maintenance, a media statement said.

After the end of June 2007, retailers will have to pay only a percent on every transaction done using a POS-device and the amount depending on the type of card used for a payment.

The only conditions for POS-device installation is a landline telephone at the shop and a company account at one of the three banks.