The establishment of the Guarantee Fund will proceed within the next period of time in the Ministry of Development and Investment , through which secured investment and working capital loans will be provided to SMEs.

Guarantee Fund - Managed by the European Investment Fund

The fund will be managed by the European Investment Fund (EIF), which is expected to sign the relevant contract with the Ministry of Development in the coming days. Upon signing the agreement, the EIF will proceed with the activation of the selection procedures of the banks that will participate in the Guarantee Fund and from which the loans will be disbursed. It is emphasized that the EIF will act as a guarantor up to 70% – 80% of the loans.

The Guarantee Fund will make available a total of 500 million euros for loans, as leverage is five times the initial capital. In fact, in the event of rapid absorption, it is foreseen that further EUR 100 million euros from the NSRF.

Eligible for a guarantee from the Fund will be new loan contracts in small and medium-sized enterprises, which will meet the ERDF eligibility rules. It is noted that the loans will be able to shall be disbursed once or in stages, the maximum amount of which will be determined by the EIF and the participating banks.

According to the Ministry of Development , due to the fact that the guarantees are provided to banks at zero cost, it will result in banks in turn granting loans with lower interest rates, longer repayment period and reduced collateral.

The existence and operation of the Guarantee Fund will follow similar financial instruments created by the European Investment Fund in other European countries, such as Italy, France, Malta, Romania, Slovakia and so on.