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6th July 2021, Skopje – Guarantee Fund will provide guarantees for loans up to EUR 500,000 for MSMEs, as well as large companies the revenues of which generated on the basis of export account for at least 30% of the total revenues. The Government and the Development Bank have already signed agreement on guarantee issuance through the Guarantee Fund. Signing of agreements between the Development Bank and the commercial banks and the saving houses is expected soon, Minister of Finance, Fatmir Besimi, wrote in the new issue of the Macedonian Banking Association’s bulletin.

– One of the instruments envisaged in the Accelerated Growth Financing Plan is the Guarantee Fund, through which state guarantee scheme will be implemented. We have recently signed Guarantee Fund Agreement with the Development Bank, under which guarantees will be issued for newly approved loans by the banks and the saving houses, which will be of benefit to MSMEs and the large exporting companies, all to the end of continuous financing of their day-to-day activities, as well as to viable business projects for purchasing fixed assets. Signing of the agreements between the Development Bank and the commercial banks and the saving houses, to express interest in this instrument, is expected soon. We believe that providing the guarantees will encourage the banks and the saving houses to increase the offer of favourable loans to companies, at the same time, reducing the risk of their loan products, Besimi said.

Portfolio guarantee for MSMEs and individual guarantees for large exporting companies are envisaged to be issued through the Guarantee Fund. They will guarantee the principal of the newly approved loans for working capital and fixed assets extended by the banks and the savings houses to the private sector. To become part of the guarantee scheme, the banks and the saving houses are to have minimum 12% capital adequacy, positive financial result in the last year and a credit portfolio being at least 70% classified in A or B category.

– As regards portfolio guarantees, intended for MSMEs, they will guarantee loans in the amount of Denar 300,000 to Denar 30,750,000, with 1- to 8-year period of repayment, including up to 1-year grace period for fixed assets loans, and with 1- to 3-year period of repayment, including up to 1-year grace period for working capital loans. Guarantee amount with respect to portfolio guarantees is envisaged to be up to 80% of the working capital loans and up to 50% of the fixed assets loans. Regarding the individual guarantees for large companies the revenues of which generated on the basis of export account for at least 30% of the total revenues, they will guarantee loans in the amount of Denar 3,075,000 to Denar 30,000,000, whereby the guarantee amount can be 50% of the loan principal at the most, Besimi said.

By implementing the guarantee credit scheme, as the Minister pointed out, banks’ and saving houses’ crediting will increase, and the companies will have easier access to capital, leading to boosted investments and economic activity.

Also available in: Macedonian Albanian

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