Financial instruments use in the period 2014-2020
The analyses show that the economic crisis puts great pressure on the public budgets and the decreasing level of lending limits the private investments including urban environment improvement and creating adequate living conditions in cities. The lack of credit resource for fixed tangible assets is one of the main factors for private investments decrease and thence growth and employment decrease.
The financial instruments as Jessica encourage both the public-private partnership and the credit institutions for participation in regional and urban development public policies. The financial instruments also stimulate entrepreneurial spirit and allow all economic actors to participate in the cities’ development and to receive support through funds from the European Union.
The financial instruments are used to support investments which are expected to be financially viable but they can’t generate enough funding from market sources. The instruments would be in the form of capital or quasi-capital investments, loans or guarantees or other instruments for risk share as where appropriate they can be combined with grants.
Under Regions in Growth 2014-2020 Operational Programme a resource totaling BGN 369,7 million has been allocated for financial instruments under the following priority axes:
-Priority Axis 1 Sustainable and Integrated Urban Development which covers urban development measure (energy efficiency in family residential buildings and students’ dormitories, urban environment, integrated public transport, sports and cultural infrastructure and areas with economic development potential) – BGN 271,3 million;
-Priority Axis 6 Regional Tourism which includes the development of tourism and cultural heritage throughout Bulgaria and aims to support the sites of national and world cultural heritage – BGN 98,4 million.