Moldovan government establishes rules for use of loan guarantee fund for small and medium – sized enterprises

18:58 | 20.08.2018 Category: Economic

Chisinau, 20 August /MOLDPRES/ – The Executive has approved the regulation on organisation, operation and use of the Loan Guarantee Fund (FGC) for Small and Medium – sized Enterprises (SMEs) at its meeting today.

The FGC has the objective of stimulating the creation of new SMEs, enhancing their competitiveness by facilitating access to finance, stimulating job creation and increasing the volume of financial resources accessed by SMEs from financial sector entities.

According to the document, the financial guarantees for securing loans requested by SMEs will be issued by the Organisation for Development of SMEs sector (ODIMM).

The regulation also provides for SMEs to benefit from financial guarantees issued by ODIMM, up to a ceiling of 80 per cent of the amount of loans requested from financial sector entities.

The financial resources of FGC will be made up of budget allocations, donor assistance, as well as from other sources.

(Reporter N. Sandu, editor M. Jantovan)

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