Bulgaria's State Fund Agriculture is cutting the cost of its direct investment loans under the 2023-2027 Strategic Plan, the fund says. From 2026, the interest rate on these loans will match the country's reference rate, which stood at 3.19% as of January 1.

Until now, the fund had set the 2026 annual rate on investment loans at the reference rate on the date of the contract plus 1 percentage point.

The fund says it made the change to ease loan terms, pointing to how the reference rate has moved and to a steady drop in demand for loans from farmers. The lower rate, it says, will encourage new investment in farming and help farmers draw down money under projects already approved.

The loans go toward finishing projects already approved under these schemes: "Investments in Farm Holdings" (II.D.1), "Investments in Farm Holdings Aimed at Protecting the Environment" (II.D.1.1), "Investments in Irrigation Infrastructure" (II.D.5), "Investments in the Wine Sector," "Restructuring and Conversion of Vineyards," and "Investments in Environmental Facilities." Anyone who has signed a grant agreement under one of these schemes can apply for a loan.

Each applicant can borrow up to 900,000 euros per project for the whole life of the scheme, and this cap covers all eligible schemes together. The loan can cover up to 90% of the grant due under the contract, minus any advance and interim payments already paid out.

Loan requests and drawdown requests must be filed on a set form, with the full set of documents, through the fund's e-services system. The fund's executive director will set by order when it starts taking applications.

The rate on each loan is fixed by the reference rate on the date the contract is signed, but it cannot be lower than the rate the fund's governing board sets for that year.

The fund will keep lending for as long as the schemes under the 2023-2027 Strategic Plan for farming and rural development run.