Funds are provided for Guarantee Fund and Development Fund within the Development Bank which aim to increase the competitiveness of companies and to encourage exports, technological development and new products that will add value to exports. This week the Government adopted decisions prepared by Ministry of Finance, which enabled the provision of funds.
In addition, the budget provides five million euros in grants to the Guarantee Fund, and an additional almost 10 million euros (610 million denars) to establish a Development Fund, according to the Ministry of Finance.
The Guarantee Fund and the Development Fund were recently announced by the Minister of Finance, Fatmir Besimi, as instruments that are part of the Plan for accelerated economic growth will be aimed at financing the recovery of the economy affected by the crisis caused by covid-19. The purpose of the Plan, as Besimi said, is to support the accelerated and sustainable growth, while maintaining fiscal stability by mobilizing capital from the private sector, in addition to the funds allocated from the budget.
Private sector support is increasing
In particular, the proposed replenishment of the Guarantee Fund by an additional five million euros will increase the support of the private sector by guaranteeing working capital and fixed assets loans that will be approved by commercial banks, which according to the multiplier will initially generate about 100 million euros of favorable loans to the economy. Thereby, the funds for guaranteeing loans approved by banks and savings houses will increase and will amount to 15 million euros in total.
The Guarantee Fund already functions as a separate organizational unit within the Development Bank to support the development of micro, small and medium enterprises as well as large exporting traders.
– In order to support the economy is the establishment of the Development Fund within the Development Bank, whose financing is provided by today’s provision of funds. The Fund will have the opportunity through favorable credit products to support export-oriented companies and activities in the field of research and development, in order to encourage exports, technological development and the introduction of new products. Export support activities will also include a supplier development program aimed at increasing the technological readiness and capacity of domestic companies to participate in global production chains, according to the Ministry of Finance.
Source: Sloboden Pecat
