Press releases

The Small and Medium-sized Enterprises Sector Development Organisation launched today, as part of a webinar, a new Guarantee Instrument for companies affected by the COVID-19 crisis. The financial instrument involves offering SMEs a guarantee product on preferential terms that can be used when taking out loans from commercial banks for both working capital and investments. Representatives of the MEI, ODIMM, commercial banks and entrepreneurs participated in the virtual event.

The State Secretary General of the Ministry of Economy and Infrastructure, Lilia Pali, present at the event reiterated the importance of the new guarantee product and the advantages of the use of the financial guarantee by the business community.

“The COVID-19 pandemic is an unprecedented challenge for the world, and neither has our country been bypassed by the effects of this pandemic crisis. In this context, the Moldovan economy, like the economies of countries in the world and the region, faced two shocks, one internal – as a result of restrictive containment measures, and one external, which targeted exports, remittances, foreign investment that suffered a considerable decline. According to the revised macroeconomic forecast for 2020, GDP is projected to have a negative ratio of minus 4.5 % while the forecast for 2021 is projected to be more optimistic, with a positive GDP growth of 4.1 %, "said Lilia Palii.

According to the Secretary General of State, the Government has come up with a series of tools to support the business environment in this crisis situation. Today’s event is dedicated to one of those instruments that provides for a new guarantee programme for companies affected by the pandemic crisis.

The new financial product is launched by ODIMM in partnership with Moldovan commercial banks for the issuance of preferential loans to SMEs affected by the pandemic crisis. Thus, companies with a decrease in sales revenue of 30 % between March and June 2020 compared to the similar period of the previous year will be able to apply for working capital loans guaranteed by the State at a rate of up to 80 %, with a zero guarantee fee until 31.12.2021. At the same time, companies applying for investment loans will be able to benefit from guarantees covering up to 80 % of the loan up to a maximum amount of RON 5 million.

The additional financial means allocated in the amount of RON 50 million will be subject to the multiplier effect, thus, for the newly developed product, the ODIMM’s capacity to issue guarantees will be RON 150 million, with the possibility of reallocation as the ceiling of available means from other unused products is consumed, or of increasing the multiplier.

“SMEs play one of the most important roles in the Moldovan economy, providing 98 % of all businesses, which account for more than 60 % of the workforce. The new guarantee instrument complements the Active Products currently offered by the Credit Guarantee Fund. Currently, bank loans are the main source of financing for both SMEs and the whole business environment and can be a lifeline in times of distress. We encourage entrepreneurs, in addition to ODIMM support programmes involving direct allocations of resources in the form of non-repayable financial means, to access and make use of the credit products offered by the financial sector, with the State covering up to 80 % of the loan requested, "stressed Iulia Costin, Director-General of ODIMM.

Currently, 429 financial guarantees amounting to more than RON 168 million have been granted through the ODSME Credit Guarantee Fund, ensuring the disbursement of loans amounting to RON 492 million and generating investments in the economy amounting to more than RON 714 million.

To view the new guarantee product for SMEs affected by the pandemic crisis visit link

{gallery}../07.08.2020{/gallery}