Portfolio Guarantees

The Portfolio Financial Guarantee constitutes the commitment of the Guarantor (ODA) to an eligible loan portfolio of the Lender (Bank) to share the credit risk between the Guarantor and the Lender associated with the loan portfolio to be formed.

Providing increased access to finance for all MSMEs in all sectors of the economy, especially those that have difficulty in obtaining finance due to lack of credit history or lack of available collateral, by offering Lenders capital relief and credit risk sharing.

1. capped portfolio guarantees with a guarantee ratio of 80%;
2. uncapped portfolio guarantees with a 50% guarantee rate.

Portfolio guarantees may be issued for both pledged and unpledged credit portfolios.

The maximum amount of a guaranteed credit that can be requested is MDL 5 million, EUR 250 thousand or USD 250 thousand.

The bank intending to become a Lender under the Loan Portfolio Guarantee Scheme will submit an application form to the ODA. and will complete a questionnaire related to social and environmental management systems.

Following review of the form and attached documents, in the event of a decision of acceptance by the Lender, the Guarantor will sign a Guarantee Agreement approving the limits of the guaranteed portfolio, within which the Lender will be able to include loans concluded with eligible beneficiaries, without the need for the Guarantor's consent for each individual transaction.

In order to benefit from a guaranteed loan, applicants will apply to one of the partner banks with which APD has signed guarantee agreements and request a guaranteed loan.

The review of the loan application is carried out by each bank in accordance with the bank's internal procedures and regulations as well as the GCF Operational Manual on Portfolio Guarantees.

If the enterprise has the capacity to repay the requested loan, but the loan does not meet the bank's risk requirements, the bank will review the suitability of the loan and the borrower in accordance with the eligibility criteria of the guarantee scheme. If all the eligibility criteria of the guarantee scheme are met, the bank may conclude the credit agreement with its inclusion in the portfolio granted by the APD under the guarantee agreement and the disbursement of credit means may be made immediately without prior acceptance by the APD.

In order to benefit from a guaranteed loan from the FGC under the Loan Portfolio Guarantee Scheme, the applicant shall comply with the following conditions and eligibility criteria.

Eligibility conditions for inclusion in the Portfolio

Environmental and social exclusion list

General exclusion list