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de Razvan Diaconu , 12.8.2019
The program encourages the development of SMEs by granting state guarantee facilities for loans granted to them.
The guarantee threshold for 2019 is RON 700 million.
The draft bill provides for:
- the total cost of loans granted under the Guarantee Program for Loans to SMEs that consist of ROBOR 3M + a fixed margin, as follows:
- for loans with a share of 80% guaranteed by the state, the margin is maximum 2.0% per year
- for loans guaranteed by the state in a proportion of 50%, the margin is of maximum 2.5% per year
- The margin also includes the total level of fees applied by the credit institution at all stages of lending.
- The margin does not include the single guarantee premium and subsequent fees to operations related to the lending activity (for example notarial fees, costs related to the valuation and registration of guarantees, etc.).
- The single guarantee premium consisting of the risk fee due by the program beneficiary to MFP and the administration fee due by the beneficiary to FNGCIMM
- Eligibility criteria for beneficiaries, as well as for credit institutions that want to participate in the Program.
- details of necessary documents and their flow between the credit institution and FNGCIMM for the granting of the state guarantee, as well as its monitoring and the methods of recovering the amounts paid in case the credit institution requests the payment of the guarantee
- the model of conventions to be concluded between the MFP and the two guarantee funds and credit institutions needed for carrying out the program are approved by order of the Minister of Public Finance and will be similar to other state guarantee programs.
- CAEN codes details needed for the implementation of projects for the development / establishment of leisure centres, including those for the development / establishment of spa-based treatment centres, as well as CAEN codes excluded from the granting of guarantees (financial intermediation, armaments manufacturing, gambling, wholesale or retail trade, security activities, etc.).
The beneficiary must submit to credit institutions collateral guarantees, which, along with the state guarantee and the legal real estate and/or movable mortgage on the assets financed from the loan in the case of investment loans, cover at least 100% of the financing value.
The draft bill is published on the MFP website, under the Decision Transparency section.
The types of guarantees granted by the program are:
- state guarantee of 80% for investment loans financing development projects/ establishment of leisure centres, investment projects for production activities, services and innovation, with a maximum value of the guaranteed financing of RON 1,250,000.
- state guarantee of 50% for loans/lines of credit for financing the working capital with a maximum value of the guaranteed financing of RON 5,000,000.
- state guarantee of 50% for investment loans with a maximum value of the guaranteed financing of RON 10,000,000.
A beneficiary can cumulate the financing guarantee facilities within a maximum value of RON 10,000,000.
The maximum duration of the financing is 120 months, for investment loans and 24 months for loans/lines of credit for financing the working capital.
Lines of credit can be extended by up to 24 months.