The founding of the America for Bulgaria Foundation (ABF) was made possible by the success of the Bulgarian-American Enterprise Fund (BAEF), an investment fund created by the United States of America to support the development of the private sector in Bulgaria. Originated by the first President Bush and the United States Congress through the Support for East European Democracy (SEED) Act in 1991, the BAEF began with an initial capital base of $55 million that subsequently grew through successful investments to over $400 million. The fund stimulated free markets and entrepreneurial activity by making debt and equity investments in over 5,000 small and medium-sized enterprises and became a major real estate investor. Employing thousands, many of these companies have prospered and now are role models of professional management, transparency and good governance. A major bank, the Bulgarian American Credit Bank (BACB), evolved from these investments and became the leading bank in Bulgaria for middle market lending.

The BAEF also has had a major influence on the development of western-style capital markets, working with the government to create the country’s first home mortgage program, the first mortgage bond issuance and the first listed special purpose investment vehicles, all of which have helped increase capital formation and provide investment products for the public as well as for the newly-formed private pension system. These pioneering initiatives have been adopted by other Bulgarian institutions and are now widely in use.

Despite its considerable progress since 1989, Bulgaria’s transition to a society of legal justice, civic participation, widespread economic prosperity and true democracy remains a work in progress. Many economic and social challenges are acknowledged but unresolved, while others are virtually unaddressed. Nearly all are underfunded, in part due to a lack of resources both public and private, and in part because private philanthropy is not yet well developed.

With the support and encouragement of the U.S. President, Congress and United States Agency for International Development (USAID), the BAEF’s volunteer Board of Directors founded the America for Bulgaria Foundation in early 2008 to address these concerns. The ABF board believes that this $400 million foundation can make a major contribution to Bulgaria’s continued progress, and represents an enduring legacy and symbol of U.S. commitment to an important ally — a solid long-term centerpiece for strong, positive USA-Bulgaria relations.