The Credit Guarantee Fund (FGC) in 10 years issued approximately 740 guarantees of 312 billion kwanzas, to small and medium-sized companies, said the chairman of the board of directors, Luzayadio Simba.
These guarantees have allowed commercial banks to grant loans to micro, small and medium-sized domestic companies, at an estimated cost of 514 billion kwanzas.
According to the CEO of the Credit Guarantee Fund, Luzayadio Simba, when taking stock of operations of the FGC, the granted guarantees provided the creation of 20,397 direct and indirect jobs countrywide, thus ensuring the livelihood of several Angolan families.
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The Credit Guarantee Fund which was created in May 2012, by Presidential Decree, has been developing work to strengthen the economy which, via credit guarantees, has served to diversify the economy, poverty fight and social exclusion.
Luzayadio Simba said that the fund was in line with the National Development Plan (PND), where the productive sectors such as agriculture, cattle breeding and fisheries, as well as other initiatives linked to the development sectors of the national economy, are among the fund´s priorities.
In this regard, the manager said, the FGC has strengthened its commitment to promoting the value of national production, by ensuring access to bank credit for micro, small and medium enterprises and individual entrepreneurs.
The FGC chairman clarified that the Credit Guarantee Fund, besides guaranteeing funding, ensuring payment to the financing banks in the event of default by economic agents, is also responsible for promoting, defending and developing the National Guarantee System.
Its organic structure has a line of analysis and issue of pre-guarantees, which allow the applicant (businessperson) to submit their project directly, increasing the possibilities of acquiring funding from commercial banks, with coverage of up to 75% of the amount financed.
According to the manager, so far, medium-sized companies are the biggest beneficiaries of this guarantee, with an amount of 282 billion, out of a total of 439 guarantees issued, with banks disbursing around 318 billion kwanzas.
Luzayadio Simba said that the FGC also has guarantees issued in the macro-sectors of manufacturing industry, geology and mining, support services for the manufacturing sector and construction materials.
In the same way, the fund provides guarantees to investors that propose to produce food oil, salt, hygiene articles, packaging, soap, detergents, wood and its derivatives, glass, fertilisers and soil correction materials.
The Credit Guarantee Fund is a non-banking financial institution, which was created in 2012 by the State and it is responsible for promoting, defending and developing the National Guarantee System, acting as a counter-guarantor in the operations of banking institutions.