EximBank is extending the guarantees facilities for the commercial banks that are financing SMEs
Bucharest, 25 January, 2017 – EximBank has allocated 125 Million Lei to the commercial banks up to the end of the last year under the SME Guarantees Facility offered in the name and on the account of the Romanian State for issuing guarantees for financing the small and medium enterprises.
”The total facility allocated for 2016 amounted at 200 Million Lei, but considering that there are still 75 Million Lei available, EximBank has decided to extend the validity of the facility for the current year up to the complete usage of funds. We are therefore expecting the commercial banks to access this instrument beneficial to all parties involved in a financing agreement: it mitigates one of the setbacks of accessing the finance resources for SMEs, namely the value and levels of collateral thus stimulating the demand for financing.”, said Traian Halalai, Executive President of EximBank.
During the first part of last year, EximBank has extended its portfolio by launching the SMEs Guarantees Facility a product that allows any commercial bank on the market to conclude an agreement with EximBank and to access the facility up to a limited level. Consequently, EximBank may issue rapidly sovereign guarantees for the credits granted to SMEs for investments or current activity by the partner bank.
The guaranteed percentage of financing for the state guarantees issued under this facility varies as per the destination of the financing between a maximum 80% for the investment credits and 70% for the current activity loans. The guarantees issued under this facility are completing the individual guarantees of the SME for the credit granted by the bank and considered valid by the financing bank.
This facility is part of the guarantees products portfolio that the Romanian State is offering through EximBank to the commercial banks in order to support the access to financing of the local companies.
The commercial banks may also access the counter guarantee in the name of and on the account of Romanian State that allows EximBank to guarantee up to 80% of the letters of banking guarantee (LBG) issued by the financial institutions for investment projects in priority economic domains. The counter guarantee is issued for the LBG for bidding participation, advance payments reimbursement, good execution or any other types of LBG necessary for internal or export contracts and has the same currency of the LBG or guarantees facility.
Another category of products that EximBank is offering on behalf of the Romania State is the one related to mitigating risks, the bank having a vast portfolio of insurance products aiming at considerably reducing the political and commercial risks that may incur during the international commercial transactions.
EximBank has been actively involved for almost 25 years in supporting and promoting the Romanian business environment by endorsing the local companies’ projects. Its specific financial instruments are targeted exclusively to corporate segment and may be accessed by any type of company either individual or along with the financing bank. Additional details on products at: www.eximbank.ro or email@example.com.