CEC Bank extends guarantees to the agricultural companies and cooperatives

The National Credit Guarantee Fund for Small and Medium Enterprises (FNGCIMM) will issue, in a partnership with the CEC Bank, guarantees to the agricultural companies and cooperatives, the Fund informed in a release on Tuesday. 

Farming companies and cooperatives thus join FNGCIMM's traditional beneficiaries - the SMEs defined according to the Law No 346/2004. 

The FNGCIMM guarantee is demanded by the bank and offers more freedom in choosing viable financing, at an affordable price. The FNGCIMM covers by guarantee a maximum of 80pct of of medium and long-term investment credits and up to 70pct of the short-term credits for working capital or of letters of guarantee, up to 2.5 million euros per beneficiary. 

Based on lenders' demand, the Fund might further expand its portfolio of beneficiaries. 

FNGCIMM is a venture capital, non-banking financial institution, established to facilitate the SMEs access to funding, by guaranteeing their loans from banks or other sources. It implements governmental programmes to relaunch economy, develop the business milieu and support employment. It operates as a joint stock company fully owned by the Romanian state, under the prudential supervision of the central bank (National Bank of Romania, BNR). 

FNGCIMM is a member of the the European Association of Guarantee Institutions (AECM) and observes its rules and principles.

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