Small- and medium-sized entrepreneurs will be able to easier access loans provided by commercial banks-partners of the Organization for Small- and Medium-sized Sector Development (ODIMM). MP Dumitru Alaiba and Economics Minister Sergiu Gaibu informed about the simplification of the procedure of accessing credit guarantees, which guaranteed the loans asked by Small and Medium-sized Enterprises (SMEs) from banks.
According to the officials, unlike the individual guarantees, which are presently provided by ODIMM, the portfolio guarantees will guarantee a portfolio of credits provided to SMEs by creditors (banks), in accordance with the pre-established criteria, with removing the need of individual coordination of the guarantee between the bank of ODIMM.
“The implementation of such a mechanism of guarantee provides a string of advantages against the individual guarantees: short processing time; simplification of the process of asking for guaranteed credits; poor resources on behalf of the guarantor and the creditor for managing the guaranteeing process; enhanced impact in the economy, through facilitating the access to financial resources by the business environment and increasing the volume of investments generated in the economy,” according to the quoted source.
The initiative came with the high increase in demands in guarantees coming from small- and medium-sized enterprises last year.
“The number of new guarantees provided in 2021 exceeded five-fold the number of guarantees issued in 2020. Presently, the Credits Guarantee Fund (FGC) has a ceiling of about 600 million lei,” the Economics Ministry said.
Also, to support entrepreneurs, the Economics Ministry and ODIMM inform about the removal of the commission of guaranteeing (0.5%) for all guaranteeing products provided by ODIMM for 2022. This measure is schedule to be approved in a short time, in order to back the business environment on the crisis period. At the same time, decision-makers plan to extend the quota of guaranteed credit up to 80% on all guaranteeing products of ODIMM.
FGC is an instrument of entrepreneurial support, created and managed by ODIMM, the mission of which is to issue financial guarantees, which guarantee the credits asked by SMEs from partner financial institutions (commercial banks). The active guaranteeing products cover up to 80% of the sum of loan demanded and the value of guarantees varies between 500,000 lei for debutant companies up to 7 million lei for exporting companies. One Moldovan lei provided as financial guarantee facilitates the access to 2.6 lei in form of credit and generates investments worth 3.3 lei in the economy. (Moldpres/Business World Magazine)