Press releases

Small and medium-sized entrepreneurs will be able to access loans more easily from commercial banks, which are partners of the Organisation for the Development of the Small and Medium-sized Enterprises (ODSME).

The Government has today approved amendments to Law No 179/2016 on small and medium-sized enterprises, which will simplify the procedure for accessing credit guarantees requested by SMEs from banks. Thus, unlike individual guarantees that are currently provided by the MSMEs, portfolio guarantees will guarantee a portfolio of loans granted to their MFIs by the lender (banks) in accordance with pre-determined criteria, removing the need for individual coordination of the guarantee between the bank and the MSMEs.

The implementation of this Guarantee Facility offers a number of advantages over individual guarantees:

• reduced processing time;

• simplified application process for secured loans; (III)

• reduced resources from the guarantor and lender to administer the guarantee process;

• increased impact in the economy by making it easier for businesses to access financial resources and increasing the volume of investment generated in the economy.

The initiative came with the increased demand for guarantees from small and medium-sized enterprises over the past year. The number of new guarantees granted in 2021 exceeded 5 times the number of guarantees issued in 2020. At present, the Credit Guarantee Fund (FGC) has a ceiling of approximately RON 600 million.

Also, to support entrepreneurs, the Ministry of Economy and ODIMM announces the abolition of the guarantee fee (0.5 %) for all guarantee products offered by ODIMM for the year 2022. At the same time, it is planned to extend the share of guaranteed credit up to 80 % on all ODIMM guarantee products.

The FGC is an entrepreneurial support tool, created and managed by ODIMM, whose mission is to issue financial guarantees guaranteeing loans requested by the HLEI from partner financial institutions (Commercial Banks). Active guarantee products cover up to 80 % of the amount of credit claimed, and the value of guarantees ranges from RON 500 thousand for start-up companies to RON 7 million for exporting companies. A lion granted in the form of a financial guarantee facilitates access to RON 2,6 in the form of a loan and generates investments in the economy of RON 3,3.

Source: www.me.gov.md