For the purpose of considering and deciding whether to provide the guarantee, the financing institutions* that have entered into Cooperation Agreements with FGCR shall observe the following general minimum conditions of guarantee:
- The loan must be used for financing agricultural/fishery production or for processing agricultural products (excluding trade in agricultural products);
- The beneficiary’s rating by the bank must allow for the guarantee to be granted;
- The beneficiary must not be in financial distress;
- The beneficiary must not be subject to insolvency proceedings and must not meet the criteria set forth by the national legislation for the initiation of collective insolvency proceedings at the request of its creditors;
- The beneficiary must not have overdue amounts recorded in the Central Credit Register/Credit Bureau records (or, if such amounts exist, their payment must be confirmed by the date the guarantee is approved);
- The beneficiary must hold agricultural land/plantations/fish farming or aquaculture holdings/livestock populations or livestock farms/poultry farms/bees, etc., as evidenced by documents issued by APIA or by other central/local authorities;
- A suretyship contract must be concluded with at least one of the stockholders/shareholders/directors/legal representatives of the firm, acting as natural person(s).
Additionally, for processors of agricultural products:
- The beneficiary must qualify as an SME.
* The following financing institutions have entered into Cooperation Agreements with FGCR that allow for simplified general conditions of guarantee: CEC Bank, Banca Transilvania, OTP Bank and Libra Internet Bank.
For those financing institutions that have not entered into Cooperation Agreements allowing for simplified general conditions of guarantee, the following requirements also apply:
– must not have overdue debts to the general government budget, whereby the payment of such debts has not been regulated (staggered payment agreements, postponement, etc.) or they cannot be covered from the amounts to be recovered from the government budget, as specified in the tax certificate;
– must not be subject to foreclosure by the National Agency for Fiscal Administration (ANAF) (unless such foreclosure is suspended following the approval of staggered payments for the tax obligations), according to Section III.D “Other mentions” in the tax certificate;
– must have no debts with the competent fiscal authorities.