The Cabinet agreed the regulations concerning the Load Guarantee Fund for Small and Medium-Sized Enterprises, IPN reports.

The fund is the legal successor of the Fund for the Development of Entrepreneurship and Small Businesses that the Organization for the Development of the Sector of Small and Medium-Sized Enterprises (ODIMM) used to implement the state policy on assistance for developing the SME sector for facilitating access to financing for enterprises that do not have sufficient security by issuing financial guarantees for financial institutions so as to guarantee loans.

Under the regulations, the updated objectives of the Load Guarantee Fund are to stimulate the creation of new SMEs, to develop the enterprises with growth potential, including those oriented to export, to create and keep jobs, to increase the volume of financial resources raised from financial institutions.

The SMEs could benefit from financial guarantees from ODIMM in the amount of at most 80% of the loan’s value by sharing the credit risk with financial entities (banks, microfinance organizations) with which ODIMM will sign contracts.

The fund will consist of state budget allocations, financial assistance provided by donors and other resources allowed by law.