Press releases

A new financial instrument will emerge in the near future on the Moldovan financial market. ‘portfolio guarantees’, for small and medium-sized enterprises. The concept of this initiative was discussed today, 27 July 2021, in a workshop with experts from the field and representatives of financial institutions. The implementation of this mechanism will incentivise the increase of the guarantee cap by the minimum RON 1 billionto be assimilated by banking and financial institutions for a maximum period 2 years. Thus, the loans requested by MSMEs from merchant banks will contain the guarantee included in the credit product, exempting entrepreneurs from submitting guarantee applications and paying fees. The concept of the Credit Guarantee Facility was developed by the consultancy company LANDT, specialised in the creation and management of guarantee funds, in collaboration with specialists ODIMM. It will be possible to carry out this project with the support of The European Fund for South East Europe Development Facility (EFSE DF).

“In the context of revitalising the business of SMUs affected by the pandemic crisis, the launch of the new Credit Guarantee Facility is urgently needed and timely. This financial instrument will be fine-tuned and connected to the needs of banking institutions, making it attractive for business. We appreciate the support of the Development Facility of the European Fund for South East Europe and the opening to productive dialogue of representatives of banking institutions. MIM and ODIMM will continue developing and fine-tuning all entrepreneurial support instruments, taking into account both the needs and realities of the market and the wishes of banking partners’, stated at the start of the workshop, Lilia Palii, Secretary General of the Ministry of Economy and Infrastructure.

ODIMM Director-General Iulia Costin stressed that with this innovative initiative, the Guarantee Facility used by the Credit Guarantee Fund will move to a new level of development.

“The relations built over the years with banking institutions in the country in the implementation of support programmes and instruments allow us to say that the sector is ready for such a mechanism. In recent years we have witnessed major changes in the banking sector, which eventually became more prudent, safer, more transparent, but at the same time is open to new instruments and geared to the demands of its clients. We also appreciate the support of the Ministry of Economy and Infrastructure, the Ministry of Finance, the National Bank and EFSE DF in the process of developing this mechanism, which is the natural stage of developing a guarantee fund in a market economy”.

Representatives of financial institutions present at the event welcomed the initiative ODIMMthey showed openness to further partnership and strengthened efforts to increase access to finance for SMEs.

The new mechanism is being developed in the context of increased demands on individual guarantees provided by ODSME Loan Guarantee Fund.

In year 2021the volume of requests from economic operators for the granting of State guarantees is 10 times higher than in the similar period of the previous year, indicating the attractiveness and necessity of this instrument in the credit market. So throughout this year, ODIMM issued 282 financial guarantees new in the amount of RON 231.9 millionwhich made it possible to disburse appropriations amounting to RON 592 millionand the amount of investment projects related to these transactions is RON 678 million.

FGC it is the only credit guarantee fund in the Republic of Moldova tasked with ensuring access to finance for domestic companies by issuing financial guarantees.

To date, 779 guarantees amounting to RON 451 million have been issued through the FGC, facilitating the disbursement of loans amounting to RON 1.24 billion, and generating investments in the economy totalling over RON 1.58 billion.

{gallery}../27.07.21 - FGC{/gallery}