The Government will significantly expand the scope of the Loan Guarantee Fund for SMEs (FNGCIMM) which will be able to grant direct funding from its own funds, including co-financing for accessing the European funds.
FNGCIMM will also be enabled to manage funds for public development, according to a draft government decision that the Ministry of Finance launched to public debate.
„We will also grant loans, but our strategic objective is to transform the Fund into a Romanian entity similar to EIF” (the European Investment Fund, editor’s note), said Dumitru Nancu, General Manager of FNGCIMM, for cursdeguvernare.ro.
FNGCIMM will provide „for the legally established legal entities, particularly small and medium-sized enterprises, financial services in the areas of financing, guarantees and commitments of financing or loan guarantees, as well as any other financial operations necessary for implementing the specific objective of their activity,” mentions the draft government decision.
Also, FNGCIMM “may be mandated by central public authorities, managing authorities or international financial institutions to carry out specific activities in the areas of financing, co-financing, guaranteeing with the funds that it administrates, under the requirements set by the legislation issued for such operations.”
The Government intends to involve the Fund in the implementation of the National Rural Development Program 2014-2020 and the Human capital Operational Program, but also in „national programs for financing the entrepreneurship in sensitive areas such as agriculture, tourism, construction (for instance, the programs “Romanian tomatoes”, „First recreation centre”, „Hostels for seniors”, etc.), explains the explanatory memoranda of the draft government decision.
FNGCM „can contribute to the success of” these programs „with both its own funds and by the management of public funds.”
„It would become possible to set mechanisms for interconnecting the EU operational programs, which would create the prerequisites for the horizontal growth of several components of community development and the implementation of the measures for promoting the Romanian products from agriculture and manufacturing industry”, says the explanatory memoranda.
FNGCIMM is a joint-stock company whose sole shareholder is the Ministry of Finance. The development programs mentioned above are managed by the Ministry of Regional Development.
