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This is an archived USAID document retained on this web site as a matter of public record.
USAID Receives $27.5 Million Return on Investment in Bulgarian Fund
FOR IMMEDIATE RELEASE
November 24, 2008
Press Office: 202-712-4320
Public Information: 202-712-4810
www.usaid.gov
WASHINGTON, D.C. – Today, the Bulgarian-American Enterprise Fund (BAEF) presented a ceremonial check for $27.5 million dollars to the U.S. Agency for International Development (USAID). This money represents earnings from the BAEF investment activities in Bulgaria over the past 17 years. This money will be returned to the U. S. Treasury on behalf of the American people.
The original grant of $55 million was made by USAID to BAEF in 1991 to assist the economic transition process in Bulgaria after the fall of the Soviet Union. The check which was presented today represents fifty percent (50%) of the original grant amount. In addition to achieving exceptional development impact in Bulgaria, the Fund also achieved an extraordinary financial return—with estimated proceeds from its investments of approximately $450 million. The balance of the investment proceeds, estimated to be approximately $375 million, will be used to endow a charitable legacy foundation to be known as the “America for Bulgaria Foundation” which will continue to support private sector development in Bulgaria.
In addition to the check presentation, Ken Yamashita, Deputy Assistant Administrator for the Europe and Eurasia Bureau presented the “President’s Call to Service Award for Volunteer Service” to the BAEF Board of Directors for their 17 years of exceptional pro-bono service.
The BAEF has had a major influence on the development of western-style capital markets, and also created and sponsored the country’s first home mortgage program, the first mortgage bonds and the first special purpose investment vehicles that increase capital formation for the newly-emerging private pension system. With a capital base of just $55 million, the Fund has extended loans and made investments of $380 million in over 4,500 small and mid-sized companies employing thousands. Many of these firms have grown substantially during this time and have served as role models of professionalism, transparency and good governance.
Pursuant to an agreement between USAID and the Fund, the Fund had committed to repay $27.5 million to the U.S. Treasury out of the proceeds from liquidating its investment portfolio.
For more information about USAID visit www.usaid.gov/ .
The U.S. Agency for International Development has provided economic and humanitarian assistance worldwide for nearly 50 years.
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