Luanda – The Credit Guarantee Fund (FGC) received this Wednesday, in Luanda province, 50 billion kwanzas from the Ministry of Finance, with a view to operationalising measures to boost the national economy.
According to a press release from the Ministry of Finance that ANGOP had access to, the money was granted through a special issue of public debt securities.
The note adds that the financial institution will be able to strengthen its intervention by ensuring financing for companies and individual businesspeople from the commercial banks so that they can concentrate on projects related to the productive sector.
The FGC is implementing and operationalizing the Plan for the Acceleration of Credit Guarantee Promotion (PAFGC), which was made available to enable micro, small and medium-sized enterprises to participate in a sustainable and balanced way.
The agriculture, livestock, manufacturing industry and fisheries are the main sectors of the plan and the projects at the amount of 10 million kwanzas will be automatically approved by the FGC public guarantee taking into account the interest rate foreseen in the Notice Nº 10/22 of the National Reserve Bank of Angola (BNA).
The plan is part of the emergency measures announced by the Angolan government to ensure that micro-farmers and peasant families contribute to increasing national production for self-sufficiency and economic growth of the country.
The measure also includes an increase in the coverage of the credit guarantee from 75 to 80 % of the financed capital, making sure that beneficiaries have adequate access to finance so that they can implement their projects, thus contributing to improving the business environment.
According to the document, the funding of the FGC will enable it to expand its services in five regions with agricultural potential focused on fighting regional asymmetries and to promote sustainable economic development.
Meanwhile, Credit Guarantee Fund is a financial institution and not a bank, which was created under the Presidential Decree nº 78/12 of May 04, and aims to facilitate the access to bank finance through the issuance of public guarantees. NE//MRA/jmc
