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Letters of guarantee in favour of AFIR for obtaining the advance PUBLIC BENEFICIARIES

 

Pursuant to Government Emergency Ordinance no. 79/2009, the Rural Credit Guarantee Fund (FGCR) issues letters of guarantee necessary for the public beneficiaries of the National Rural Development Programme (NRDP) and for similar entities to obtain the advance referred to in the Financing Agreements signed with AFIR.

The value of the letter of guarantee is 100 % of the advance requested from AFIR.

Obtaining a letter of guarantee is a simple process consisting in submitting or sending the documentation to FGCR by post/courier service and paying the guarantee fee.

If any additional documents need to be attached to the guarantee documentation, a specialised financial analyst will contact you. The letter will be issued within two working days since FGCR has received the complete documentation.

  • Communes, towns, cities
  • Intercommunity Development Associations (IDAs)
  • Local Action Groups (LAGs)
  • Irrigation Water Users’ Associations/Organisations (IWUAs)
  • Cultural establishments and religious structures
  • A Financing Agreement under the NRDP, concluded with AFIR;
  • At least one acquisition endorsed according to the Financing Agreement;
  • No overdue amounts with banks and other financing institutions;
  • No debts to the government budget;
  • The beneficiary must not be subject to insolvency or foreclosure proceedings.

The guarantee fee is 0.05 % per month, calculated at the value of the letter of guarantee.

For issuing the letters of guarantee

  1. Application for a letter of guarantee (original); Download

A preventive financial control visa will be applied in the case of public beneficiaries

  1. Guarantee agreement (2 originals); Download

In the case of IDAs, both the IDA and each member of the association must fill in the agreement

  1. Consent for Central Credit Register database inquiry (3 originals); Download
  2. Declaration of acceptance of the FGCR policy on the processing of personal data, signed by the mayor/legal representative (original); Download
  3. Beneficiary’s decision approving the intention to apply for a letter of guarantee from the Guarantee Fund (copy);
  4. Beneficiary’s decision approving the investment value of the project (copy);
  5. Grant agreement signed with AFIR and the amendments thereto, if any, including the indicative budget and the declaration of phased applications for interim payments (copy);
  6. AFIR opinion endorsing a purchase/buyout/all types of procurement – according to the provisions of the Financing Agreement (copy);
  7. Statement from the Treasury regarding the opened accounts (copy);
  8. Beneficiary’s decision approving the revenue and expenditure budget (copy);
  9. Local budget forecast for the validity period of the letter of guarantee, including the repayment of the requested advance, the payment of the fee for the letter of guarantee, and the yearly breakdown of the total revenue and expenditure for the entire validity period of the letter of guarantee, in line with the classification of economic activities (copy);
  10. Tax registration certificate (copy);
  11. Tax certificate providing the payment status of the financial obligations to the general government budget or of the social contributions, as appropriate (copy);
  12. Tax certificate application, whereby the beneficiary requested that such certificate should detail the status of his tax obligations that entail foreclosure (copy);
  13. Identity cards of the legal representatives (copies bearing the stamp and signature of the legal representative and a note certifying they are true copies of the original);
  14. The appointment document of the legal representative: court ruling, decision, etc. (copy, bearing the stamp and signature of the legal representative and a note certifying it is a true copy of the original);
  15. Copy of the payment order issued for paying the fee for the letter of guarantee.

 

Additionally, for LAGs and IWUAs:

– Promissory note without protest, payable at sight and equal to the guaranteed amount, issued on his own behalf by the legal representative of the association/organisation in favour of FGCR I.F.N. S.A. (original);

– Extension whereby the issuer extends the payment deadline for a period equivalent to the validity period of the letter of guarantee (original); Download

– Self-declaration by the beneficiary’s legal representative on issuing and signing of a promissory note in favour of FGCR (original); Download

– Self-declaration by the beneficiary’s legal representative, stating that the association/organisation is not engaged in direct income-generating activities throughout the entire period of PNDR financing (original); Download

– Declaration by the beneficiary concerning the obligation to notify the Fund about any changes to the documents that underpinned the issue of the letter of guarantee (original); Download

– Statute, memorandum of association, operating licence issued by the Ministry of Agriculture and Rural Development (for LAGs), authorisation order issued by the Ministry of Agriculture and Rural Development (for IWUAs) – copies.

 

For extending the validity of the letters of guarantee

  1. Application for an extension of the validity of the letter of guarantee (original); Download
  2. Beneficiary’s decision approving the intention to apply for an extension by FGCR of the validity of the letter of guarantee (copy);
  3. Explanatory note registered with AFIR, whereby the beneficiary requests an amendment for extending the duration of the Financing Agreement, and AFIR’s reply (copy);
  4. The latest amendment to the financing agreement (copy);
  5. Local budget forecast for the validity period of the letter of guarantee, including the repayment of the requested advance, the payment of the fee for the letter of guarantee, and the yearly breakdown of the total revenue and expenditure for the entire validity period of the letter of guarantee, in line with the classification of economic activities (copy);
  6. Identity cards of the legal representatives (copies bearing the stamp and signature of the legal representative and a note certifying they are true copies of the original);
  7. The appointment document of the legal representative: court ruling, decision, etc. (copy, bearing the stamp and signature of the legal representative and a note certifying it is a true copy of the original).