The ODA-administered Credit Guarantee Fund has launched a new mechanism of credit guarantees - portfolio guarantees.
This mechanism offers advantages to both financial institutions and credit beneficiaries. The implementation of portfolio guarantees and additional capitalization of the Credit Guarantee Fund in the amount of 187 million lei will double the guarantee potential of ODA, increasing access to financing for at least 900 more enterprises, which will directly contribute to the country's economic development and income growth. The new guarantee mechanism was launched during the event "Access to Finance through Portfolio Guarantees - Evolution and Innovation". Deputy Prime Minister and Minister of Economic Development and Digitalization, Dumitru Alaiba, who was present at the launch of the new mechanism, emphasized that the Credit Guarantee Fund is a tool with great potential to stimulate the growth of the national economy. "By providing guarantees, we contribute to reducing the risk associated with lending and, indirectly, facilitating access to finance for entrepreneurs. Thus, we can support innovations, investments and job creation," the Minister emphasized. The Governor of the National Bank of Moldova, Octavian Armasu, said that the NBM acknowledged certain financial guarantees issued by the fund as mitigating the credit risk. "Our economy is going through a difficult period. The effects of the war in Ukraine are also being felt, and against this background, the economy is struggling to recover from the shocks of the previous years. It needs support through monetary and fiscal policies, and entrepreneurs need support and encouragement from the authorities," Octavian Armasu said, emphasizing that SMEs respond best to support and encouragement, thus contributing to the restart of the economy. According to ODA director Dumitru Pintea, the expected result of this mechanism is the guarantee of a credit portfolio worth about 2 billion lei. This will facilitate access to finance for at least 900 enterprises and will save/create at least 3,000 jobs. He also noted that the advantage of portfolio guarantees is their ability to cover several loans under one roof, which provides more flexibility and efficiency for both financial institutions and businesses, and the financing process becomes easier and faster. During the period of operation of the Credit Guarantee Fund, about 1,900 loans totaling more than 3.8 billion lei have already been secured. These loans were secured by individual financial guarantees for a total amount of about 1.6 billion lei, which contributed to direct capital mobilization of about 4.6 billion lei in the economy. //27.10.2023 - InfoMarket.
