EximBank is making available to the commercial banks a guarantee portfolio amounting at 200 Million RON which can be used this year by the local banking institutions for guaranteeing the credits granted to small and medium enterprises (SMEs). Starting this month, any commercial bank may conclude a guarantee level agreement with EximBank under which a certain amount will be available in terms of state guarantees issued by EximBank and accessible to the commercial bank in order to be directed towards investment and/or current activity financing granted to the SMEs by the partner bank.
“EximBank acts continuously for creating a favorable local business development environment and is launching this new facility that positively affects all the parties involved in a financing agreement. Accessing a state guarantee supports the SMEs in the process of obtaining the necessary financing for development, innovation and employment boost and at the same time is allowing the banks to speed up the financing process having a consistent cover for the associated risks. The state guarantees issued by the Romanian state and available now to the local companies through Exim Bank represent an extraordinary and accessible resource and we strongly encourage the small and medium enterprises and especially the banks to explore it further”, said Traian Halalai, Executive President of EximBank.
The cover percent of credits of the state guarantees issued by EximBank under the guarantee level agreement varies as per the financing aim, reaching a maximum of 80% for investment credits and 70% for the current activity financing. The guarantees issued under the agreement with the partner bank come to add up to the collateral guarantees of the SME and considered eligible by the financing bank.
This new facility is part of the guarantees portfolio of the Romanian state, available through EximBank to the commercial banks in order to support the access to financing for local companies. The most recent product launched by EximBank in this category is the counter guarantee under the state name and account, that enables EximBank to guarantee a maximum of 80% of the letters of banking guarantee (LBG) that are to be issued by the commercial banks for investments projects in the priority domains.
The counter guarantee is issued for the letters of banking guarantee necessary for bidding participation, advance payments reimbursement, good execution or any other type of LBG required in internal or export contracts; the counter guarantee has the same currency as the LBG or the other guarantees.
Another category of products managed by EximBank under the state account focuses on mitigating risks, the bank having a large portfolio of insurance products aiming at reducing the commercial and political risks associated with international commercial transactions.