Infomarket

Publications of the part

Individual and portfolio financial guarantees will be provided through the Credit Guarantee Fund.

Individual and portfolio financial guarantees will be provided through the Credit Guarantee Fund.

This is provided for by the draft Regulation on the organization, functioning and use of the Credit Guarantee Fund for small and medium-sized enterprises, submitted by the Ministry of Economy for public consultations. The new Regulation that regulates the activity of the Organization for Entrepreneurship Development (ODA), which provides guarantees through the Fund, contains among other things a new mechanism of SME support through loan portfolio guarantees, introduced in the spring of 2022. A portfolio guarantee is a commitment by which the institution that manages the loan guarantee funds assumes the credit risk associated with a portfolio of eligible loans granted under a cooperation agreement signed with a financial sector entity. Also through the Fund the provision of individual financial guarantees will continue. The draft document describes the order of organization and functioning of guarantee activities, regulates the selection procedures for banks and non-bank credit organizations and lists their eligibility criteria for approval as creditors, describes the mechanism for granting different categories of guarantees, the order of Fund formation, requirements for monitoring the performance of obligations of all parties, etc. The explanatory note states that the introduction of the new guarantee mechanism will require an increase in the size of the Loan Guarantee Fund by at least 200 million lei. The money might be drawn from the World Bank's resources under one of the components of the future third Competitiveness Enhancement Project of Moldova which is currently being discussed. Its total cost will be $50 million, including $15 million to replenish the Credit Guarantee Fund. In 2021, ODA provided through the Fund 468 financial guarantees worth 387.8 million lei, which facilitated access to loans worth 992.8 million lei and generated investments amounting to more than 1.13 billion lei. At the end of 2021, the volume of active guarantees amounted to 412.9 million lei, up 270.6% compared to 2020. Expansion of guarantee mechanisms is expected to increase access of 900 SMEs to finance totaling 2 billion lei, provide financial guarantees for at least 1 billion lei and implement projects worth 2.5 billion lei, save and create new jobs for 1,000 people, increase the share of active financial guarantees for SMEs provided by the banking sector from 2.2% to 5%. Consultations on the project are open until August 17: https://bit.ly/3bKn1WC. // 11.08.2022 - InfoMarket

News on the subject

The IMF mission reaches staff-level agreement with the Moldovan authorities on the first review of the program and, if approved by the Executive Board of the Fund, the country will receive $27 million in September.
The IMF mission reaches staff-level agreement with the Moldovan authorities on the first review of the program and, if approved by the Executive Board of the Fund, the country will receive $27 million in September.
Moldovan authorities have not received an official notification from Rosselkhoznadzor of a partial ban on the supply of fruits and vegetables, but they will take measures to strengthen quality control and diversify supplies.
Moldovan authorities have not received an official notification from Rosselkhoznadzor of a partial ban on the supply of fruits and vegetables, but they will take measures to strengthen quality control and diversify supplies.
In July 2022, annual inflation in Moldova (for the last 12 months) was 33.55%, monthly inflation - 1.39%, and inflation in January-July 2022 - 21.84%.
In July 2022, annual inflation in Moldova (for the last 12 months) was 33.55%, monthly inflation - 1.39%, and inflation in January-July 2022 - 21.84%.
The National Bank of Moldova (NBM) raised its annual average inflation forecast for 2022 from 27.3% to 29.5% (+2.2 p.p.) and expects its maximum values in Q3.
The National Bank of Moldova (NBM) raised its annual average inflation forecast for 2022 from 27.3% to 29.5% (+2.2 p.p.) and expects its maximum values in Q3.
Import of coal and transportation of firewood has been facilitated in Moldova, and Termoelectrica was allowed to urgently purchase 20 thousand tons of fuel oil.
Import of coal and transportation of firewood has been facilitated in Moldova, and Termoelectrica was allowed to urgently purchase 20 thousand tons of fuel oil.
The Ministry of Finance’s important achievement during the current Cabinet's activity year was the signing of a new program with the IMF for a larger amount, macro-financial assistance from the EU and other donors’ funds.
The Ministry of Finance’s important achievement during the current Cabinet's activity year was the signing of a new program with the IMF for a larger amount, macro-financial assistance from the EU and other donors’ funds.