Press releases

Small and medium-sized entrepreneurs will be able to access more easily credit provided by commercial banks, partners of the Organisation for the Development of Small and Medium-sized Enterprises (ODIMM).

Member of Dumitru Alaiba and Minister of Economy Sergiu Gaibu announced the simplification of the procedure for accessing credit guarantees, guaranteeing the loans requested by SMEs to banks. Thus, unlike the individual guarantees that are currently granted by DSOs to SMEs, the portfolio guarantees will guarantee a portfolio of loans granted by the creditor (banks) to the HPI, in accordance with pre-established criteria, removing the need for individual coordination of the guarantee between the bank and the IMMO.

The implementation of such a guarantee mechanism offers a number of advantages over individual guarantees: (I) low processing time; (II) simplifying the application process for secured loans; (III) reduced resources from the guarantor and creditor to administer the guarantee process; (IV) increased impact in the economy, by facilitating access to financial resources by the business environment and increasing the volume of investment generated in the economy.

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

In addition, to support entrepreneurs, the Ministry of Economy and the ODIMM also announce the removal of the guarantee fee (0.5 %) for all guarantee products provided by the IMMO for 2022, which is planned for short approval, in support of the business environment during the crisis. It is also planned to increase the share of guaranteed credit to 80 % for all DSO SME guarantee products.

The FGC is an entrepreneurial support instrument, set up and managed by the DSOs, which has the task of issuing financial guarantees guaranteeing the loans requested by the HMM from partner financial institutions (Commercial banks). Active guarantee products cover up to 80 % of the amount of loan demanded, while the value of guarantees ranges from lei 500 thousand for start-up companies to lei 7 million for exporting companies. A leu provided in the form of financial collateral facilitates access to lei 2.6 in the form of loans and generates investments in the economy worth lei 3.3.

More declarations can be found here.

Source: www.me.gov.md