ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of August 20, 2018 No. 828

About approval of the Regulations on Fonda of guaranteeing the credits for small and medium scale enterprises

Based on part (5) article 13 of the Law No. 179/2016 on small and medium scale enterprises (The official monitor of the Republic of Moldova, 2016, Art. No. 306-313, 651) DECIDES: the Government

1. Approve Regulations on the organization, functioning and use of Fund of guaranteeing the credits for small and medium scale enterprises it (is applied).

2. This resolution becomes effective from the date of publication.

Approved by the Order of the Government of the Republic of Moldova of August 20, 2018 No. 828

Regulations on the organization, functioning and use of Fund of guaranteeing the credits for small and medium scale enterprises

I. General provisions

1. Regulations on the organization, functioning and use of Fund of guaranteeing the credits for small and medium scale enterprises (further - the Provision) establishes the principles of activities of Fund of guaranteeing the credits for small and medium scale enterprises (further - Fund of guaranteeing), and also procedure for functioning and the organization of process of guaranteeing.

2. The principles making basis of issue of financial guarantees are:

transparency - provision in the order of all concerned parties of information on possibility of receipt of financial guarantees, criteria of compliance and warranty products;

variety - the non-discriminatory treatment of applicants;

equality - selection criteria and approvals of statements for guaranteeing will be applied so that any competent borrower had equal chances in case of receipt of financial guarantee;

the first addressed, the first received (primul venit, primul servit) - order taking and addresses on receipt of credit guarantees for small and medium scale enterprises which correspond to criteria of compliance and warranty products, is performed with respect for the sequence of registration of requests in Fund of guaranteeing, using the coefficient of animation approved by annually Coordination council of the Organization for development of the sector of small and medium scale enterprises (further - Coordination council) founded according to the Order of the Government No. 538/2007. For the purposes of these provisions the request is considered the Organization for development of the sector of small and medium scale enterprises given from the moment of obtaining (further - ODIMM) all documents and information provided in this Provision.

3. For the purposes of this provision the following determinations are used:

financial guarantee - the obligation in writing to the organization in the financial sector undertaken by ODIMM concerning ensuring sufficient pledge, at the scheduled time, for the loans granted to the physical persons performing economic activity or legal entities;

the credit - the sum of money provided as loan to the physical persons performing economic activity or legal entities by the organization of the financial sector on contractual basis, the amount which shall be returned during the established period (loan repayment);

pledge - real guarantee (it is accepted according to internal regulations of the organization of the financial sector and provisions of the current legislation), based on which the subject can apply for pledged property, having priority before other creditors, including the state, for satisfaction of the secure requirement;

animation coefficient - the value used for determination of capability of guarantee, established by Coordination council of ODIMM;

warranty products - types of financial guarantees which ODIMM provides to small and medium scale enterprises;

information system on management of guarantees - the digital application intended for digitization of processes of addresses, check, issue and monitoring of ODIMM of guarantees on the credits obtained by micro, small and medium scale enterprises.

II. Mission and tasks of fund of guaranteeing

4. The mission of Fund of guaranteeing is directed to realization of state policy on support of development of the sector of small and medium scale enterprises in the Republic of Moldova for the purpose of simplification of access to financing of small and medium scale enterprises which have no sufficient pledge, by issue of financial guarantees for benefit of the organizations of the financial sector for the purpose of guaranteeing credits/loans.

5. For performance of the mission, stated in Item 4, Fund of guaranteeing realizes the following purposes:

1) stimulation of creation of new small and medium scale enterprises, development of those which have growth potential, including oriented to export;

2) stimulation of creation and jobs preservation by support of small and medium scale enterprises which promote the economic growth and employment of the population;

3) increase in amount of the financial resources received by small and medium scale enterprises from the organizations of the financial sector;

4) increase in portfolio of the credits/loans intended for small and medium scale enterprises which promote investment attraction in national economy, by issue of the financial guarantees reducing risk;

5) increase in competitiveness of small and medium scale enterprises by simplification of access to finance.

III. Management and organization of activities of fund of guaranteeing

6. ODIMM issues financial guarantees for providing the credits/loans requested by small and medium scale enterprises of the Republic of Moldova from the partner organizations of the financial sector.

7. Financial guarantees are issued within Fund of guaranteeing using the coefficient of animation which is annually approved by Coordination council.

8. Financial guarantees are issued with respect for the principle of separation of credit risk with the organizations of the financial sector with which ODIMM signed agreements on cooperation. ODIMM publishes the list of the partner organizations from the financial sector on the official web page.

9. Terms, limit rate, the size and warranty products shall be updated depending on circumstances, taking into account evolution of the financial market and strategic documents in the field of development of the sector of small and medium scale enterprises and be submitted by ODIMM for approval to Coordination council.

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