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Loans for private beneficiaries whose investment are also financed under The National Rural Development Programme (NRDP) 2014-2020 and under The Operational Programme for Fisheries and Maritime Affairs (OPFMA) 2014-2020

 

Based on the Agreements concluded with the Ministry of Agriculture and Rural Development, the Rural Credit Guarantee Fund IFN SA provides guarantees to the financing institutions that have entered into Cooperation Agreements with the Fund, in order to secure the loans granted to the private beneficiaries of the NRDP 2014-2020 and of the OPFMA 2014-2020 programmes for the purpose of implementing their investment projects co-financed under those programmes.

The FGCR guarantee can cover up to 80 % of the loan value. The outstanding amount of the guarantees, up to the value of the loan and the related interest, will be secured by the borrowers with the assets held by them or by third-party guarantors when the loan is granted.

The beneficiaries of loans that can be guaranteed by the Fund may be legal entities acting in their capacity as private beneficiaries of the NRDP 2014-2020 and OPFMA 2014-2020 programmes:

  1. commercial companies as defined by Law no. 31/1990, as subsequently amended and supplemented;
  2. authorised natural persons, individual enterprises and family enterprises pursuing economic activities, established in accordance with Government Emergency Ordinance no. 44/2008;
  3. associations, agricultural companies and agricultural cooperatives established under Law no. 36/1991 on agricultural companies and other forms of association in agriculture and under Law no. 566/2004 on agricultural cooperation;

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 implementing investments that are co-financed under the NRDP 2014-2020 and OPFMA 2014-2020 programmes;
  • The beneficiary must submit a Grant agreement and an indicative budget concluded with AFIR or with OPFMA;
  • The beneficiary’s rating by the financing institution must allow for the guarantee to be granted;
  • The beneficiary must not be in financial distress (iv);
  • 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/third-party guarantors must submit to the financing institution collateral guarantees that, together with the FGCR guarantee, fully cover the approved loan and the related interest;
  • The beneficiary must not have overdue amounts recorded in the Central Credit Register (or, if such amounts exist, their payment must be confirmed by the date the guarantee is approved);
  • A suretyship contract must be concluded with at least one natural person acting as stockholder/shareholder/director/legal representative of the loan beneficiary.

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:

  • legal entities:

– 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;

*The loan agreement can be signed before applying for the FGCR guarantee, subject to obtaining the guarantee from the Fund

Commercial companies/agricultural companies/cooperatives Authorised natural persons, individual enterprises, family enterprises, newly established companies or companies that have never taken loans before
Starting from 1.25 % per year* 3.8 % per year

 

The fee applies only to the value of the FGCR guarantee, not to the entire loan value.

Where the lending period is shorter than one year, the fee is calculated for that period only.

*Based on the beneficiary’s rating by the bank

For the purpose of considering and deciding whether to provide the guarantee, the financing institutions* shall submit to the Fund, at notificari@fgcr.ro, the following scanned documents:

 

FGCR-specific documents

  • The guarantee application – (a document reserved to the bank);
  • Declaration on accepting the FGCR policy on the processing of personal data, signed by the legal representative (original) – Download Appendix 1.1.
  • A declaration on not being “in distress”
    • Simplified form – for authorised natural persons, individual enterprises, family enterprises, and companies established less than three years before – Download Appendix 1.2
    • Complete form – for companies established for more than three years – Download Appendix 1.3

Documents that are usually included in the loan file of the financing institution:

  • The latest annual balance sheet (for beneficiaries that are required by law to prepare a balance sheet and that have been registered with the National Trade Register Office (ONRC) for more than three years);
  • Grant agreement under the NRDP 2014-2020 and OPFMA 2014-2020 programmes; indicative budget;
  • Certificate of company details issued by the ONRC, in its extended form.

* At present, the following financing institutions have entered into Cooperation Agreements with FGCR that allow for a simplified documentation and guarantee provision flow: CEC Bank, Banca Transilvania, OTP Bank and Libra Internet Bank.

For those financing institutions that have not entered into Cooperation Agreements allowing for a simplified documentation and guarantee provision flow, the guarantee documentation shall also include, in addition to the above-mentioned documents:

  • an analysis report prepared by the financing institution;
  • the approval document(s) issued by the financing institution for the loan/other financial instruments, as appropriate, and the excerpt(s) from the minutes of the loan committee meeting;
  • the latest balance sheet as at 30 June of the current financial year, duly submitted;
  • the latest monthly trial balance prepared before the date of the guarantee application;
  • a tax certificate valid on the date of the guarantee application, stating that the beneficiaries:
  • have no overdue debts to the general government budget or such overdue amounts can be covered from the amounts to be recovered from the government budget;
  • are not 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;
  • the tax certificate application, whereby the loan beneficiary requests that such certificate should detail the status of his tax obligations that entail foreclosure, as mentioned in the application form;
  • a feasibility study/business case/business plan, as appropriate.