NBM RECOGNIZES FINANCIAL GUARANTEES TO SMALL BUSINESSES FROM ODIMM

The National Bank of Moldova (NBM) recognized financial guaranties issued by the Organization for Small and Medium Enterprise Sector Development of Moldova (ODIMM) as a means of reducing credit risk.

According to the ODIMM, in accordance with the amendments to the NBM Regulation on the procedure for credit risk for banks, it has been supplemented with a point, which allows banks to use a share of the credit risk related to the ODIMM guarantees in the proportion of 20%.

In order to use the guarantees, the entrepreneurs should file an application to one of the ODIMM’s partner banks, and after that the bank will consider it. Furthermore, the ODIMM will consider the application for the guarantee within five working days, and if it is adopted the bank and the applicant will sign a loan agreement.

The financial resources of the Loan Guarantee Fund consist of state budget allocations and donor assistance. So far, the ODIMM has issued guarantees to 415 companies totaling 155.81 million lei, which contributed to the obtaining loans totaling 460.05 million lei.