Hebros Bank Presentation for the Forum and Fair for Ecotourism, Mountains and Protected Areas

1
Hebros Bank Presentation for the Forum and Fair
for Ecotourism, Mountains and Protected Areas
Partners in Prosperity
2
Hebros Bank Profile

• Established in 1993
• Privatized by Regent Pacific Group (currently
  iRegent.com) on 29.03.2000
• As of 2002 iRegent.com owns 99.03 of Hebros
  capital
• Member of 2nd Bank Group with BGN 421,722,000 in
  assets and BGN 94,742,000 of equity
• Conducts its business through 4 regional offices
  -58 branches and 75 bank offices.

3
Hebros Bank Development

• Restructuring of the organization model
  separation of the Retail and Corporate Banking
• Creating SME and Product Development divisions
  within the Corporate Banking Department
• Participating and developing various Corporate
  client programs and products
• EBRD credit line for SMEs
• Microloans guaranteed by the Social Guarantee
  Fund of the Ministry of Labour and Social Policy
• WHR
• And others.

4
Hebros Bank Development

• Amount of Hebros Bank credit portfolio in the SME
  sector BGN 43,522,224
• Proportion of the SME portfolio to the total loan
  portfolio of the Bank 22
• Exposure in the sphere of tourism BGN
  10,896,632
• Number of disbursed credits for 1 year under the
  EBRD SME financing program 180 loans
• Number of loans approved by Hebros for 1 month
  under the Social Guarantee Fund Program 60
  loans.

5
Hebros Bank Competitive advantages

• Very well-developed branch network
• Competitive terms and conditions
• Experienced staff
• Experience in providing services and support for
  the business of its Corporate Clients.

6

• Ecotoursim financing in Hebros Bank

7
Specifics of the banking ecotourism financing in
Bulgaria

• High risk profile of the borrowers - Start-up
  businesses
• - Long-term investment projects
• - Lack of experience/business culture of the
  borrowers
• Lack of supporting infrastructure/logistics
• Lack of attractive collateral.
• High cost of financing
• Small businesses
• High costs of loan processing
• Locations of the businesses are difficult to
  reach and service
• The unsophisticated nature of the borrowers does
  not imply use of other bank services

8
Specifics of the banking ecotourism financing in
Bulgaria

• Great potential of the Ecotourism financing
• This is a growth sector
• Building loyalty in the clients will pay off in
  the future
• Financing can be profitable if a scheme for risk
  sharing is established
• Ecotourism can revive regions, which up to now
  have been unattractive for financing.

9
Opportunities for ecotourism financing at Hebros
Bank

• Social Guarantee Fund
• The government guarantee will diminish the risk
• The program is designed especially for start-ups
  and the borrowers profile matches the profile of
  the potential ecotourism borrowers

10
Opportunities for ecotourism financing at Hebros
Bank

• SAPARD Measure 03 Development and
  Diversification of Economic Activities, Provision
  for Multiple Activities and Alternative Income
• Opportunities for larger amount of financing up
  to EUR 200,000
• Financing of rural tourism
• Preservation of environment.

11
Proposed measures to increase the ecotourism
banking financing

• Risk co-sharing or guarantee schemes, which will
  make ecotourism more attractive for the banks
• Specialized Technical Assistance
• Promoting ecotourism
• Increasing the entrepreneurial culture
• Pre-assessment.

12
CONTACTS

• Corporate Office, Sofia 1558
• 2, Knyaginya Maria Luiza Blvd,
• TZUM, 7th floor
• tel.[phone]
• fax [phone]
• Head Office, Plovdiv 4018
• 37, Tzar Boris III Obedinitel Blvd,
• tel. [phone]
• fax [phone]