11.11.2021. A presentation of the announced Credit Guarantee Fund was held at the Ministry of Economic Development, where the initial capital would amount to EUR 10 million, and the working capital for the beginning, for 3 years of operation, would amount to EUR 400,000.00.
One of the main problems in accessing finance faced by companies, entrepreneurs as well as persons with registered activity refers to the difficulties in securing collateral required by financial institutions, which is usually in the form of a mortgage or pledge on equipment or other movable property.
The Association of Banks of Montenegro supports the establishment of the Fund. At the meeting, the discussion was about the legal aspects of the establishment, monitoring the work of the Fund and the composition of the Board of the Fund. The Association is more focused on the commercial conditions that will be offered to clients, through insight into the criteria and conditions for providing services, future bylaws and internal acts of the future Fund. It was presented that the evaluation of client requests will be by banks and that 50% of the placed funds will be guaranteed by the Fund, with the exception of pandemic post COVID vulnerable companies up to 70%. So he regularly sets a limit of EUR 250,000.00 per client, or for a placement of EUR 500,000.00. The price is 0.5% quarterly on the amount of the guarantee.
We expect bylaws to cover items such as: 1) Purpose of the loan, definition of the borrower (e.g. legal entities and entrepreneurs established and registered in Montenegro, which belong to the SMI sector and operate for more than 12 months) what about start-ups companies? 2) method of lending 3) credit conditions 4) fees 5) use of loans, deadlines 6) security instruments 7) required documentation 8) other provisions, whether there are incentives for less developed municipalities, regions of Montenegro, as well as the manner, conditions of reimbursement from the Fund in case