The Loan Risk Guarantee Corporation aims, according to its creation law No. 12 of 2016, to enable small and medium enterprises to obtain the required financing from financial institutions, in a way that contributes to supporting the process of economic and social development, contributing to enhancing competitiveness in the financial sector, improving the level of financial services it provides, and supporting its stability.
The Corporation is currently making intensive efforts to conclude work agreements with operating banks aimed at securing guarantees for the risks of financing granted to small and medium enterprises while ensuring the rights of all parties. These agreements include the most prominent priorities of the corporation’s work and the target sectors, which are “industrial projects with added value, industrial projects, agricultural and animal production, and renewable energy projects. Entrepreneurs, crafts and handicrafts.
In a statement to SANA’s delegate, the Corporation’s Director General, Mamoun Katibeh, affirmed that at the forefront of the institution’s tasks is ensuring the risks of credit facilities “loans and guarantees” granted by financial institutions for small and medium enterprises and securing financial resources to ensure these risks, indicating that the Corporation’s Board of Directors is intensifying its efforts to conclude work agreements with operating banks to provide The necessary guarantees that help small and medium enterprises obtain the necessary financing.
A writer revealed that agreement has been reached between the corporation and three public and three private banks on the final version of the joint agreement with the corporation, and it will be signed within the coming days, stressing that during the past two months, intensive meetings were held with 19 public and private banks, and the text of the final agreement with the corporation was handed over to be concluded with them. Subject to the modifications required by them.
A writer stated that the Foundation recently received several requests from those wishing to establish small projects to give them guarantees with banks that would enable them to obtain the necessary financing. Their requests, which are currently considered marketing studies, were studied and it was found that some of them have a good marketing idea in addition to the seriousness of the client and can be granted guarantees and others are reckless. From the client, the lack of seriousness and the lack of experience, indicating that the institution is still in contact with the owners of serious ideas so that guarantees can be granted after the signing of the aforementioned agreements.
The writer reiterated the assertion that after signing the work agreements with the operating banks, the work of the institution will start by facilitating the access of bank clients to financing if the guarantees are essentially non-existent, such as the owner of a rented shop and wants to establish an industrial workshop in it, or if the guarantees are in place but are not acceptable, such as a title deed. A common or agricultural home. In both cases, there are a number of conditions for granting the guarantee from the institution, foremost among which is "economic viability, experience and seriousness."
It is noteworthy that small and medium enterprises will, in the current stage, have priority in obtaining guarantees from the Loan Risk Guarantee Corporation to secure the necessary financing for their take-off by public and private banks, given their great importance in stimulating the production process and their contribution to providing new job opportunities.