The National Credit Guarantee Fund for SMEs (FNGCIMM) ended the first semester of 2018 with a net profit of RON 47.5 million, up 50 percent compared to the same period last year. For Prima Casa the Fund gave 16,660 guarantees, worth RON 1.66 billion.
“The strategy of expanding the loan portfolio of the National Credit Guarantee Fund for SMEs, as well as a better position towards the evolution of the Romanian entrepreneurial environment, which is in a progressive dynamics impacted by the economic growth of the last years, is confirmed by the financial results of the first semester of 2018. The net profit realized on June 30, 2018, amounting to RON 47.5 million lei, a maximum of the last five years, was generated mainly by the lending dynamics for lending to the entrepreneurial sector: in the first semester of 2018, 4,435 guarantees were granted, more than 4 times more than the first semester of 2017,” says the press release.
The total balance of the ongoing portfolio of commitments, with own funds, administration sources and state funds, reached RON 30.7 billion on June 30, 2018, up 14 percent over the same period of the year previously, of which RON 17.2 billion represents the First House – Prim Casa (Guarantees and Guarantees Promises) portfolio of commitments.
The balance of guarantees from own sources continued the upward trend, registering an increase of 24 percent compared to the same period of the previous year, up to RON 1.3 billion.
“A growth vector is also represented by the guarantees for bridge loans granted by the partner banks in the Start-Up Nation Program, along with the reversal of other Fund programs,” FNGCIMM said.
The volume of guarantees granted to local government beneficiaries implementing projects supporting the agricultural sector, road, social, and educational infrastructure in rural areas increased by 15 percent compared to the first 6 months of 2017, reaching RON 580.6 million.
The total amount of guarantees issued during the first half of 2018 was 21,520, totaling RON 3.03 billion, up 9 percent year-on-year.
According to the press release, the Prima Casa program also maintains a significant share in the total volume of operational activity in 2018, with the guarantee and guarantees promise given in the first half of the year being 16,660, worth RON 1.66 billion from a total allocated of RON 2 billion this year.
“The strategic line aims at re-centering the Fund’s activity in the area of its institutional mission: to support SMEs, whether they are in the Start-Up phase or in later stages of development. It is essential to persevere in materializing internal optimization directions, constant modeling of the guarantee offer in order to meet the financing needs of the entrepreneurs so as to best serve the most important level of the Romanian economy: SMEs. The Fund has the institutional capacity and expertise the professional team of a dedicated team to develop programs that can ensure economic sustainability in the years to come,” said Alexandru Petrescu, FNGCIMM General Manager.
The National Credit Guarantee Fund for Small and Medium-sized Enterprises (FNGCIMM SA-IFN) is a non-bank financial venture capital institution set up to facilitate SME access to finance by providing guarantees for financing instruments contracted from commercial banks or other sources.
The FNGCIMM is organizing government programs aimed at economic recovery, the development of the business environment and the creation and support of jobs, functioning as a joint stock company, with sole shareholder of the Romanian State, under the prudential supervision of the National Bank of Romania.
The guarantee of FNGCIMM SA – IFN is up to 80 percent of the loan amount, without exceeding the amount of EUR 2.5 million per beneficiary and is issued at the request of the partner financing institutions for approved financing based on the analysis of the documents submitted by the sponsor.
FNGCIMM SA – IFN collaborates with 30 financial institutions on the basis of working conventions. The guarantee of FNGCIMM SA – IFN is the most liquid collateral, payable within 90 days of the fund’s payment request, accompanied by full documentation, over a minimum of 2 years, the average duration of a mortgage.
The Fund provides national territorial coverage, responding to entrepreneurs’ requests through all 4 branches, 5 offices and 3 subsidiaries. Based on its membership of the European Mutual Guarantee Association (AECM), FNGCIMM operates according to European rules and principles.