Transcript The Fund’s activity

ISMEA – SGFA
Rural Credit Guarantee Funds
January 12th 2006 - Budapest
The Past
Ministry of Economy
Supervision
Rural Credit Guarantee Fund (FIG)
Subsidiary guarantee
The Change – First Step
Public rural credit guarantee funds
reorganization:
2004 December – the Fund merged by
incorporation into ISMEA
ISMEA – Rural Market Services Government
Agency
 Supervised by Ministry of Agriculture
The Change – Second Step
ISMEA added new guarantee products
to the subsidiary guarantee
December 2005 – ISMEA’s guarantee
activities pass to SGFA (company 100%
owned by ISMEA)
Current Situation
Ministry of Agriculture
Supervision
ISMEA
100%
Subsidiary guarantee
SGFA
Direct guarantee
The Subsidiary Guarantee Fund
The fund was established in 1961 in
order to help farmers to access longterm agricultural loans to start up new
business
In the seventies the Fund was allowed
to issue guarantees for agricultural
medium and short-terms loans too
The Subsidiary Guarantee
Automatically issued by the Fund
Paid by the Fund when the banks incur
a loss after the primary guarantees
collection
The Fund’s Activity
From
To
Bank
Loan
Borrower
Borrower
Primary guarantee
Bank
After the primary guarantees compulsory collection
Fund
Subsidiary guarantee
Bank
Additional guarantees
Fund
After the payment
Borrower
Cover Percentage
Percentage of loss
Amount disbursed
Long-term Medium-term
Short-term loans
by the bank
loans
loans
up to €.104,000
55%
between
€.104,000 and
€.775,000
35%
from €.775,000
no guarantee
up to €.5,200
no guarantee
between €.5,200
and €.1,550,000
75%
55%
from €. 1,550,000
no guarantee
The Direct Guarantee Fund
Still in progress
A State counter guarantee is provided
for SGFA guarantee engagements
Three products
First Call Guarantee
Co-Guarantee
Counter Guarantee
Thank you
Giorgio Venceslai
[email protected]
SGFA
Via In Lucina, n.17
00186 – Rome – Italy
Tel. +390668406430