Financial guarantees in 2010 were twice larger than a year before

The Organization for Development of Small and Medium-Sized Enterprises in 2010 provided financial guarantees of 4.1 million lei to economic entities through the Credit Guarantee Fund. This figure is twice higher than in 2009, the Organization’s head Iulia Iabanji stated for Info-Prim Neo. Last year the SMEs received loans to the value of 10.5 million lei through the Credit Guarantee Fund. Four beneficiaries of financial guarantees repaid loans of over 3 million lei taken out earlier. The banks returned financial guarantee letters to the value of over 1 million lei to the Organization for Development of Small and Medium-Sized Enterprises. The guarantees were provided for an average term of 18 months. According to Iulia Iabanji, in 2010 the Credit Guarantee Fund was increased by 2 million lei from the budget. The Ministry of Economy that manages the Organization is looking for additional financial resources to augment the Fund to 100 million lei in 2011. On November 23, the Government signed five agreements with the European Commission on the provision of a non-reimbursable loan of €79 million to finance the implementation of sector projects and support the SMEs by increasing the Credit Guarantee Fund and other related projects. Currently, the Credit Guarantee Fund includes 30 active guarantees to the value of 6.7 million lei that cover loans of about 18 million lei. In 2010, the Organization for Development of Small and Medium-Sized Enterprises increased the financial guarantees. For active companies, the guarantee represents up to 50% of the loan, but not more than 700,000 lei per company, for up to five years. For startups, the guarantee is 70% of the loan, but not larger than 300,000 lei per company, for up to three years.