This chapter aims to demonstrate the ability of the National Credit Guarantee Fund for Small and Medium Enterprises S.A. IFN (FNGCIMM) to meet the criteria settled by the European regulations in order to be selected by managing authorities in Romania as implementing body foer financial instruments in the form of loan guarantees under the operational programs 2014-2020. The mission of FNGCIMM is to improve access to finance for small and medium enterprises through the issuance of guarantees and undertaking commitments to guarantee loans and other financial instruments. This mission must always be harmonized with policies aimed at the SME sector in line with national and European strategic documents, in the context of the Government Action Program and the objectives and priorities of the Partnership Agreement 2014-2020. In order to emphasize the measures of the Action Plan of the Government, FNGCIMM would be able, in addition to applying the express provisions to strengthen the guarantee instruments to stimulate investment in strategic sectors, recalibrate guarantee products and specialized ones for optimum implementation in the programming period 2014 – 2020 of the financial engineering instruments in the form of loan guarantees to support access to finance mainly to the SME sector.
Helen Kelly and Eoin Kealy provide an analysis on State Aid in Ireland in a Q&A format which outlines the authorities responsible, procedural rules and EC enforcement.
Helen Kelly and Eoin Kealy provide an analysis on State Aid in Ireland in a Q&A format which outlines the authorities responsible, procedural rules and EC enforcement.
The financial data of the current Export - Import Bank of Romania and its indicators of solvency (situated at a high level), represent, along with a diversified portfolio of financial products aimed at supporting the national economy, important factors in designating this institution as a financial intermediary of European funds that will be allocated as financial instruments in 2014 - 2020. Following a Polish business model, the current Bank of Export - Import Romania can become by the end of 2015 a development bank, meaning a financial institution essential to the smooth running of a national economy especially in terms of interventionist state policies in times of economic crisis, thus acting through anti-cyclical lending policies. Although both financial institutions would have found a clear purpose in an economy (as a development bank - Development Bank and a bank for Export Import - Export Credit Agency), this Romanian Lex Ferenda propose a formula that combines features of both institutions, creating such a financial institution - bank with state capital that wants to offer financial products - bank loans from various co-financing sources, securities, European financial instruments etc After analyzing several business models in EU, among which we note HBOR in Croatia, KfW of Germany, BDB in Bulgaria, the best suited for Romania objectives of economic development could be the model BGK, Bank Gospodarstwa Krajowego from Poland. Considering the performance that Poland obtained as EU member state in the absorption of European structural and cohesion funds 2007 - 2013, it is no wonder that European funds will be extremely important for the future Romanian Development Bank Eximbank. In this direction it is estimated that in the Multiannual Financial Framework 2014 - 2020, the institution will provide co-financing of European projects representing commitments of our country to the European Union with an impact estimated at 6 billion euros.
ASF consolidated securitisation proposals European commission September 2015exSell Group
The Commission Securitisation initiative adopted on 30 September 2015 is a package of two legislative proposals:
A Securitisation Regulationpdf(2 MB) Choose translations of the previous link that will apply to all securitisations and include due diligence, risk retention and transparency rules together with the criteria for Simple, Transparent and Standardised ("STS") Securitisations;
A proposal to amend the Capital Requirements Regulationpdf(883 KB) Choose translations of the previous link to make the capital treatment of securitisations for banks and investment firms more risk-sensitive and able to reflect properly the specific features of STS securitisations. As the prudential treatment of securitisations for insurers is laid down in level 2 texts, future adjustments will come at a later moment. The same applies to banks and investment firms as regards the prudential treatment for liquidity purposes which is included in a Delegated Act that will be amended at a later stage.
Astrid Bartels works in the Directorate General for the Internal Market, Industry, Entrepreneurship and SMEs of the European Commission. She has been with the COSME Financial Instruments unit for the past three years where she is responsible for the co-ordination of the implementation of the COSME Financial Instruments. Prior to this position, she worked in the area of chemicals legislation where she was instrumental to the setting up of the European Chemicals Agency in Helsinki.
Before joining the European Commission she was a corporate relationship manager with Deutsche Bank for ten years and spent two years as a Management Consultant with Bain & Company. She holds an MBA from the Kenan-Flagler Business School of the University of North Carolina in Chapel Hill.
The financial crisis of 2007-2009 led to a renewed increase in government deficits and debts in many EU countries, causing a full-fledged fiscal crisis in Greece and severe fiscal pressures in other euro-area countries. This has prompted a series of proposals for improving the fiscal framework of the European Monetary Union, the Excessive Deficit Procedure and the Stability and Growth Pact. The first part of this paper reviews the main properties and developments of that framework until 2007. On that basis, it discusses the recent proposals for reform, which range from marginal improvements of the existing framework to the introduction of an explicit framework for managing fiscal crises in the member states, and the expansion of the scope of policy coordination to address macro economic imbalances and the competitiveness of the member states. We find the proposal of a mechanism for dealing with government default most useful. Attempts to suppress current account imbalances and to target national competitiveness positions would most likely result in serious economic losses and do damage to the internal market of the EU. This would increase the wedge between members and non-members of the euro area.
Authored by: Jurgen von Hagen
Published in 2010
Synergies between ESIF funds, Horizon 2020 and other research programmesParma Couture
Improving linkages between various EU Funds is the best way to enhance the impact of research and innovation (R&I) investments. By coordinating different forms of support, these links help creating competitiveness, jobs and growth in the EU by combining, for example, European Structural and Investment Funds (ESIF), Horizon 2020 and other EU R&I instruments. Such a cross-cutting approach will be beneficial for gaining international quality of R&I projects, particularly in this area, where the EU is competing on the global stage.
To make these linkages a reality, national and regional authorities involved in the implementation of ESIF programmes focusing on research, innovation and competitiveness must seize the opportunity to ensure coordination and complementarities with instruments like Horizon 2020, COSME, Erasmus+, CreativeEurope and the Connecting Europe Facility. This means joint efforts at EU, national and regional levels in boosting the quality of programmes to achieve better results and higher impacts of the investments.
The European Commission has published guidance for policy-makers and implementing bodies on synergies between the different EU programmes investing into research, innovation and competitiveness, providing possible scenarios for their application in practice.
The financial data of the current Export - Import Bank of Romania and its indicators of solvency (situated at a high level), represent, along with a diversified portfolio of financial products aimed at supporting the national economy, important factors in designating this institution as a financial intermediary of European funds that will be allocated as financial instruments in 2014 - 2020. Following a Polish business model, the current Bank of Export - Import Romania can become by the end of 2015 a development bank, meaning a financial institution essential to the smooth running of a national economy especially in terms of interventionist state policies in times of economic crisis, thus acting through anti-cyclical lending policies. Although both financial institutions would have found a clear purpose in an economy (as a development bank - Development Bank and a bank for Export Import - Export Credit Agency), this Romanian Lex Ferenda propose a formula that combines features of both institutions, creating such a financial institution - bank with state capital that wants to offer financial products - bank loans from various co-financing sources, securities, European financial instruments etc After analyzing several business models in EU, among which we note HBOR in Croatia, KfW of Germany, BDB in Bulgaria, the best suited for Romania objectives of economic development could be the model BGK, Bank Gospodarstwa Krajowego from Poland. Considering the performance that Poland obtained as EU member state in the absorption of European structural and cohesion funds 2007 - 2013, it is no wonder that European funds will be extremely important for the future Romanian Development Bank Eximbank. In this direction it is estimated that in the Multiannual Financial Framework 2014 - 2020, the institution will provide co-financing of European projects representing commitments of our country to the European Union with an impact estimated at 6 billion euros.
ASF consolidated securitisation proposals European commission September 2015exSell Group
The Commission Securitisation initiative adopted on 30 September 2015 is a package of two legislative proposals:
A Securitisation Regulationpdf(2 MB) Choose translations of the previous link that will apply to all securitisations and include due diligence, risk retention and transparency rules together with the criteria for Simple, Transparent and Standardised ("STS") Securitisations;
A proposal to amend the Capital Requirements Regulationpdf(883 KB) Choose translations of the previous link to make the capital treatment of securitisations for banks and investment firms more risk-sensitive and able to reflect properly the specific features of STS securitisations. As the prudential treatment of securitisations for insurers is laid down in level 2 texts, future adjustments will come at a later moment. The same applies to banks and investment firms as regards the prudential treatment for liquidity purposes which is included in a Delegated Act that will be amended at a later stage.
Astrid Bartels works in the Directorate General for the Internal Market, Industry, Entrepreneurship and SMEs of the European Commission. She has been with the COSME Financial Instruments unit for the past three years where she is responsible for the co-ordination of the implementation of the COSME Financial Instruments. Prior to this position, she worked in the area of chemicals legislation where she was instrumental to the setting up of the European Chemicals Agency in Helsinki.
Before joining the European Commission she was a corporate relationship manager with Deutsche Bank for ten years and spent two years as a Management Consultant with Bain & Company. She holds an MBA from the Kenan-Flagler Business School of the University of North Carolina in Chapel Hill.
The financial crisis of 2007-2009 led to a renewed increase in government deficits and debts in many EU countries, causing a full-fledged fiscal crisis in Greece and severe fiscal pressures in other euro-area countries. This has prompted a series of proposals for improving the fiscal framework of the European Monetary Union, the Excessive Deficit Procedure and the Stability and Growth Pact. The first part of this paper reviews the main properties and developments of that framework until 2007. On that basis, it discusses the recent proposals for reform, which range from marginal improvements of the existing framework to the introduction of an explicit framework for managing fiscal crises in the member states, and the expansion of the scope of policy coordination to address macro economic imbalances and the competitiveness of the member states. We find the proposal of a mechanism for dealing with government default most useful. Attempts to suppress current account imbalances and to target national competitiveness positions would most likely result in serious economic losses and do damage to the internal market of the EU. This would increase the wedge between members and non-members of the euro area.
Authored by: Jurgen von Hagen
Published in 2010
Synergies between ESIF funds, Horizon 2020 and other research programmesParma Couture
Improving linkages between various EU Funds is the best way to enhance the impact of research and innovation (R&I) investments. By coordinating different forms of support, these links help creating competitiveness, jobs and growth in the EU by combining, for example, European Structural and Investment Funds (ESIF), Horizon 2020 and other EU R&I instruments. Such a cross-cutting approach will be beneficial for gaining international quality of R&I projects, particularly in this area, where the EU is competing on the global stage.
To make these linkages a reality, national and regional authorities involved in the implementation of ESIF programmes focusing on research, innovation and competitiveness must seize the opportunity to ensure coordination and complementarities with instruments like Horizon 2020, COSME, Erasmus+, CreativeEurope and the Connecting Europe Facility. This means joint efforts at EU, national and regional levels in boosting the quality of programmes to achieve better results and higher impacts of the investments.
The European Commission has published guidance for policy-makers and implementing bodies on synergies between the different EU programmes investing into research, innovation and competitiveness, providing possible scenarios for their application in practice.
SMEs have different financing risk profiles according to their growth stage. Find out from the current infografic what source of finance suits you best!
2ndChance was invited at the 35th BACEE Regional Banking Conference - Risks and Opportunities in the CEE-CIS Financial Sector. We have presented our fin-tech. reg-tech platform "2ndChance" in the following presentation: Handling NPLs in a digital environment by Dr. Daniel Dumitrescu, Chief Executive Officer, European Center for Services Investments and Financing
http://baceeconference.com/wp-content/uploads/2017/10/35th-BACEE-Conference_Final-Programme.pdf See less
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...
National funds for smes loans guarantees
1. Designation of the National Credit
Guarantee Fund for Small and
Medium Enterprises as manager of
European financial instruments
"On 31.12.2013, the balance of guarantees
provided by FNGCIMM represented 0.79% of
Romania's GDP, which has propelled our country
in 4th place in Europe in terms of ratio of
outstanding guarantees to GDP " FNGCIMM
Chairman ,, Bursa newspaper 11/26/2014
by Dr. Daniel Ioan Dumitrescu
& Dr. Diana Valentina Dumitrescu
2015
2. This chapter aims to demonstrate the ability of the National Credit
Guarantee Fund for Small and Medium Enterprises S.A. IFN (FNGCIMM) to
meet the criteria settled by the European regulations in order to be
selected by managing authorities in Romania as implementing body foer
financial instruments in the form of loan guarantees under the operational
programs 2014-2020.
The mission of FNGCIMM is to improve access to finance for small and
medium enterprises through the issuance of guarantees and undertaking
commitments to guarantee loans and other financial instruments. This
mission must always be harmonized with policies aimed at the SME sector
in line with national and European strategic documents, in the context of
the Government Action Program and the objectives and priorities of the
Partnership Agreement 2014-2020.
In order to emphasize the measures of the Action Plan of the
Government, FNGCIMM would be able, in addition to applying the express
provisions to strengthen the guarantee instruments to stimulate
investment in strategic sectors, recalibrate guarantee products and
specialized ones for optimum implementation in the programming period
2014 – 2020 of the financial engineering instruments in the form of loan
guarantees to support access to finance mainly to the SME sector.
3. Given that in 2015 the Ministry of European Funds (MFE) coordinates the process of drafting the operational programs for
the period 2014-2020, we propose the following on the role that FNGCIMM may have in the potential complementary use
of EU Programme - COSME. FNGCIMM concerns are based on the following main considerations:
1. The second update of the Partnership Agreement 2014-2020 listed in Section 2.1. the steps for coordinating the EU and
national financing instruments, being stressed that "ESIF funded interventions targeting SMEs have great potential to
create synergies and complementarities with COSME”. The programm provides funds to improve the framework conditions
for the competitiveness and sustainability of enterprises and promote entrepreneurship and entrepreneurial culture.
"Funding Instruments (national schemes) would be provided in a dedicated Priority Axes from Regional OP dedicated to
SMEs in 2014 - 2020. This is the main area of complementarity where FNGCIMM may arise due to the number of potential
SME beneficiaries, although the arguments and proposed approach remain valid in the case of certain categories of SMEs
eligible for measures of other programs (OP Competitiveness and National Programme for Rural Development ).
2. The COSME Regulation (EU Regulation nr.1287 of 11 December 2013) states that the COSME financial instruments
referred to in art.17.1 will include capital participation instruments (equity facility) and credit guarantee instruments (loan
Guarantee Facility) and "allocation by these tools will consider the demand from financial intermediaries”. In art. 19.1,
COSME Regulation provides that facility to guarantee loans (FGC) can offer both "counter-guarantee schemes and other
risk sharing schemes guarantee" (existing - as is the case of FNGCIMM and its subsidiaries) and "direct guarantees or
other risk-sharing scheme with any other eligible financial intermediaries", meeting the criteria of expertise and
experience in SME financing. According to EU rules, "taking into account the demand from financial intermediaries" would
begin with the ex-ante consultation process regarding each draft operational program conducted by competent
management authority.
3. According to EU Regulation no.1303 / 2013 on the common provisions of ESIF, managing authorities have the option,
recommended for the efficiency in implementation, to fund existing funding schemes or develop new financial schemes
and instruments, tailored to each operational program and local conditions. In parallel, they can negotiate with the EC, EU
mechanisms and programs appropriate to a set of common objectives through financial instruments managed by the EIF
that may complement or enhance envisaged national funding schemes.
4. The draft Regional Operational Programme (ROP) 2014-2020 recently published for consultation by the Ministry of
Regional Development and Public Administration (MDRAP, 20.03.2014) under Priority Axis 2: Improving the
competitiveness of small and medium enterprises, provided that "it is intended to use financial instruments", because
"most often, insufficient or lack of tangible assets that could be accepted as collateral, prevent SMEs to obtain credit lines
for the necessary investments”.
4. The increased importance that financial engineering instruments in the form of guarantees and co-guarantees
have got in the budget allocated at European, national and regional level, due to their potential to amplify the
impact of certain public interventions or policies through a high multiplier of the allocated funds, proved to be
far superior to other forms of "traditional" interventions like grants or subsidies.
Between 2007 and 2015, FNGCIMM successfully managed several national mechanisms to ensure EU funding,
such as the Support Programme for beneficiaries of projects in priority areas for the Romanian Economy GEO
no. 9/2010, The GuaranteeSscheme provided for the Measure 2.4. Financial Engineering Operational
Programme for Fisheries, Guarantees related to GEO no.79 / 2009 on the regulation of measures to stimulate
the absorption of funds under the Programme for renovation and development of rural areas by improving the
quality of life and diversification of the economy in rural areas and guarantee funds established by Law no.
218/2005.
Lessons from implementation of JEREMIE program in Romania and Central and Easter Europe converge on the
opportunity for Member States to develop complementary financial instruments tailored to national
operational programs and the particular conditions of local banking and financial markets. The result is that
"standardized" EIF instruments specific to developed and mature EU banking markets may face difficulties
and delays in implementation, proving the importance of local funding schemes adapted to developing
financial market conditions, such as in Romania.
The following arguments justify the need to establish at the level of operational programs of guarantee funds to
be used for credit guarantee schemes tailored to local market and financing needs of program participants. We
support the use of financial instruments with a higher degree of multiplication like guarantee schemes / co-
guarantee / counter-guarantee that have the proven ability to help finance a much larger number of
beneficiaries than other financing solutions. For proper operation of financial engineering mechanisms, we
propose their implementation at national and / or regional level through the existing credit guarantee funds,
specialized institutions, including FNGCIMM.
Focus on European Financial Instruments
5. a) entitlement to carry out relevant implementation tasks under Union and national
law;
b) adequate economic and financial viability;
c) adequate capacity to implement the financial instrument, including organisational
structure and governance framework providing the necessary assurance to the
managing authority;
d) existence of an effective and efficient internal control system;
e) use of an accounting system providing accurate, complete and reliable information
in a
timely manner;
f) agreement to be audited by Member States audit authorities, the Commission and
the European Court of Auditors, without prejudice to the provisions of Article 5(3).”
European Regulations
The eligibility criteria for the implementation of financial
instruments in the form of guarantees are provided in Fiche no
10 Financial Instruments – Delegated Acts Version 1 - 03 June
2013, Selection of bodies implementing financial instruments.
According to this document, before the managing authority
selects the bodies responsible for implementation of select
financial instruments including funds of funds, it must ensure
that the following minimum requirements are met by that
organization:
The following provides relevant data and information on the organization, functioning and
results FNGCIMM for each of the criteria mentioned above.
6. FNGCIMM qualifies with art. 38 (4) b paragraph ii) of Regulation No European. 1303/2013 for the
implementation of financial instruments. Regulation (Eu) No. 1303/2013 Of The European Parliament And Of
The Council of 17 December 2013 Article 38 (4) b states that, if the supporting financial instruments set up
at national, transnational, regional or cross-border managed by the managing authority or under its
responsibility , managing authority may entrust implementation tasks:
(I) EIB;
(Ii) international financial institutions in a Member State is a shareholder, or financial institutions established
in a Member State, aimed at achieving public interest under the control of a public authority;
(Iii) a body governed by public or private law.
FNGCIMM meets art. 38 (4) b paragraph ii) of the European regulation as it was established in 2001 under
Law no. 346/2004 regarding the development of small and medium enterprises and HG 1211/2001 on the
establishment of the National Credit Guarantee Fund for Small and Medium Enterprises, as amended and
supplemented, as Romanian legal entity of private law, organized as a company with shares with sole
shareholder the Romanian State represented by the Ministry of Finance. FNGCIMM is mentioned in the
Special Register of banking financial institution, managed by the Romanian Central Bank (NBR), with no. RS-
PJR-41-110030 of 03/11/2008 and operates under prudential supervision of NBR, according to Law no.
93/2009 regarding non-banking financial institutions.
Criterion a) Entitlement to carry out relevant implementation tasks
under Union and national law
7. FNGCIMM mission is established by Articles of
Incorporation approved by Government
Decision no. 1211/2001 and is improving
access to finance for small and medium
enterprises.
The main activity of FNGCIMM is the issuance
of guarantees and undertaking commitments
to guarantee loans and other funding
instruments which can be obtained by SMEs
(defined according to EU regulations) from
banks or non-banking financial institutions.
FNGCIMM may grant guarantees to other
categories of beneficiaries (public authorities,
administrative units, individuals, NGOs) as
part of government programs.
The work of FNGCIMM complies with
European legislation on state aid. The
guarantees given by FNGCIMM from its own
sources are not considered state aid,
guarantee fees charged conforms with the
Commission's Communication no.
155/02/2008. FNGCIMM has the technical
and operational capacity to rapidly implement
guarantee instruments provided in the
National Operational Programmes 2014-
2020, which could lead to a better absorption
of EU funds from the first year of
programming.
Mission
FNGCIMM could rapidly implement guarantee
instruments as:
It has an experience of 13 years in the
guarantee activity, beeing the market leader
(at 04.30.2014, the balance value of
guarantees provided from own sources,
sources in administration and in behalf of the
state amounted to 13.700 million lei);
Has the technical capacity (rules / internal
procedures, computerised system) and
organizational (including organizational
structure, specialized staff, territorial
network) to carry out the guarantee activity
in accordance with legal and prudential
supervision of NBR;
Collaborates with 30 financing institutions (27
banks and three NBFIs) on the basis of
guarantee agreements concluded with them
(thus avoiding the introduction of distortions
in the market);
FNGCIMM guarantees are recognized by the
National Bank of Romania as mitigants of
risk;
FNGCIMM is experienced in analyzing and
providing guarantees to a variety of
recipients: start-ups, SMEs, administrative
units, individuals, NGOs, research and
development institutes;
FNGCIMM has experience in implementing
guarantee scheme from public funds (state
budget, EU funds);
FNGCIMM is experienced in monitoring and
reporting the guarantees provided by public
authorities;
The institution has significant own capital
(over 975,7 million lei), which would allow for
co-guarantees to eligible beneficiaries in
addition to public sources.
Experience
FNGCIMM coordinates the working group for the structural funds of the European Association of
Guarantee Institutions - AECM. Since 2005, FNGCIMM is a full member of AECM. The President of
FNGCIMM is a member of the Board of AECM since 2007 and, in this capacity, coordinates the Structural
Funds Working Group from its founding (in 2009). Through AECM, FNGCIMM actively participated in
the consultation process organized by the European Commission through its directorates to negotiate
and create the legal framework for the structural funds and European investment and related financial
instruments.
8. FNGCIMM offers guarantee products tailored to SMEs. FNGCIMM has
experience in the management of government programs and programs
financed from EU funds. The guarantees given by FNGCIMM are express,
irrevocable, unconditional.
Types of guarantees to SMEs by FNGCIMM from own sources:
• Individual guarantees have a maximum guarantee of 80% of the loan
granted for investments and up to 50% of the loan granted to finance current
activity, without exceeding the amount of 2,500,000 euro / SME.
• Ceiling guarantees have a maximum guarantee of 80% of the amount of the
loan, regardless of its destination. Due to standardization analysis of
guarantee , the notification beeing transmitted online by the lender, the
processing time is of maximum 3 days and guarantee fees are lower. For the
maintenance of the payments within a reasonable levels, adjustment
mechanism exists between FNGCIMM and each Financial Intermediary, similar
to guarantee portfolio.
Guarantee fees charged by FNGCIMM are differentiated depending on the risk
of the the beneficiary SMEs and the use of guaranteed credit. For guarantees
granted for investment loans co-financed by Community funds, commissions
have lower values.
FNGCIMM has experience in the management of government programs and
programs financed from EU funds. Between 2007 - 2013, FNGCIMM managed
on behalf of the state a total of 6 guarantee programs and from sources in the
administration 7 guarantee programs for SMEs but also other categories of
beneficiaries: administrative-territorial units, individuals, NGOs.
Criterion b) Adequate economic and financial viability
9. Programs managed by FNGCIMM in behalf of the state:
Between 2007 - 2014, FNGCIMM managed on behalf of the state a total of 6 programs for financing / guarantee:
The "First Home", approved by O.U.G. no.60 / 2009, as amended and supplemented. "First Home" is a government
program that aims to facilitate the access of individuals to the acquisition or construction of a house by contracting
loans guaranteed by the state. Under the program, the Romanian State through the Ministry of Finance has mandated
FNGCIMM for issuing guarantees on behalf of the state in favor of banks which grant loans to individuals for the
purchase or construction of housing in the Programme. So far, FNGCIMM, gave 113.895 guarantees worth Euro
2,207,207,962 / 9,583,415,298 lei for credits totaling Euro 4,369,319,670 / 18,976,227,605 lei.
Guarantees issued in favor of granting credit to eligible donors in the support program for beneficiaries of projects in
priority areas for the Romanian economy, financed from EU structural instruments earmarked for Romania (O.U.G.
No.9 / 2010). The program aims to facilitate the absorption of structural instruments by guaranteeing loans to
beneficiaries of these funds to ensure their contribution to the financing of projects. The Ministry of Finance, as the
representative of the Romanian State has mandated FNGCIMM for issuing guarantees on behalf of the state in favor of
granting credit to eligible beneficiaries. So far, FNGCIMM, gave 19 letters of guarantee amounting to 29,648,990 euros
/ 129 810 412 lei for credits totaling 37,422,849 Euro / 163 846 239 lei.
The "Mihail Kogalniceanu" approved by O.U.G. no.60 / 2011 is a multiannual program for the period 2011-2013 to
encourage and stimulate the development of SMEs, which consists in granting a credit line, a maximum of 400,000 lei /
SME / year, with total interest-subsidized / or, where appropriate, credit guarantee by the State aims at supporting
access for SMEs to obtain financing to supplement liquidity needs within a year for the activity and to be extended
without exceeding the duration of the program. The Ministry of Finance, as the representative of the Romanian State
has mandated FNGCIMM for issuing guarantees on behalf of the state in favor of granting credits to eligible
beneficiaries. So far, FNGCIMM has awarded 1,580 letters of guarantee amounting to 31,051,497 euros / 137 524 391
lei for credits totaling 43,031,107 Euro / 190 581 045 lei.
Credit guarantee program for SMEs approved by O.U.G. no.92 / 2013 for the years 2014-2016. The program is to
provide small and medium businesses a line of credit for working capital guaranteed by the state for maximum of 50%
of the financing, excluding interest, fees and bank charges. The maximum amount of guaranteed credit is 5,000,000 lei
/ SME for a maximum of 24 months with possibility of extension for a maximum of 12 months, as determined by the
implementing rules of this ordinance, the reimbursement of the credit line. The Ministry of Finance, as the
representative of the Romanian state has mandated FNGCIMM for issuing guarantees on behalf of the state in favor of
granting credit to eligible beneficiaries. So far, FNGCIMM, granted 29 guarantees amounting to EUR 1,058,365 /
4,717,457 lei for credits totaling 2,663,044 Euro / 11.87 million lei.
Guarantees for supporting associations of owners and owners of single family homes in contracting loans in the thermal
rehabilitation of homes (O.U.G. no.69 / 2010). The purpose of the Programme is to facilitate the access of owners
associations and owners of single family housing, to bank loans granted by credit institutions with government
guarantee and interest subsidy for the execution of the intervention on heating rehabilitation of residential buildings.
The Ministry of Finance, as the representative of the Romanian State has mandated FNGCIMM for issuing guarantees
on behalf of the state in favor of granting credit to eligible beneficiaries. So far, FNGCIMM, gave 23 letters of guarantee
amounting to EUR 1,481,163 / 6,444,446 lei for credits totaling Euro 1,481,163 / 6,444,446 lei.
Guarantees issued under Law no.153 / 2011 on measures to increase the architectural and environmental quality of
buildings, granted in behalf of the state in favor of owners associations / individuals for structural and architectural
rehabilitation works and envelope of residential buildings . The execution is financed from own sources, representing at
least 10% of the works execution intervention and bank loans in lei, with government guarantee and subsidized
interest, contracted by the borrowers and are 100% guaranteed by FNGCIMM on behalf of the state, representing more
than 90% of the intervention works execution. The Ministry of Finance, as the representative of the Romanian state has
mandated FNGCIMM for issuing guarantees on behalf of the state in favor of granting credit to eligible beneficiaries.
10. FNGCIMM granted guarantees from its
own resources to ensure SMEs access to
loans related to European Operational
Programs in the period 2007 - 2013. The
financial instruments provided by
FNGCIMM for the European project
implementation cycle (2007 - 2013):
• letter of guarantee for binding letters of
comfort;
• guarantees of advances granted by the
management authority;
• letter of guarantee for bridge credits;
• letter of guarantee for co-financing
credit;
• guarantee for credit lines to settle the
payment request;
• guarantees for VAT facilities.
Instruments for the
implementation of
European Projects
11. FNGCIMM programs managed by sources in administration. Between 2007 - 2014, FNGCIMM managed, 7 programs with
sources in administration:
Guarantees for beneficiaries of the SAPARD funds, EAFRD and EFF under the Law 218/2005 on stimulating the
absorption of SAPARD funds, the European Agricultural Fund for Rural Development, European Fisheries Fund, the
European Agricultural Guarantee by taking the risk of lending. The program beneficiaries are associations of local
councils and local councils for rural infrastructure projects, technical urban and forest roads. FNGCIMM guarantee is up to
100% for letters of guarantee in the short, medium and long term to public beneficiaries of eligible projects and up to
80% for public beneficiaries. So far, FNGCIMM, granted 549 letters of guarantee amounting to EUR 152 223 567/604
480 348 lei for loans totaling Euro 206 307 610/819 248 282 lei.
Managed "Credit guarantee scheme for banks selected beneficiaries for the Fisheries Operational Programme" (POP
2007-2014). Financial engineering instrument as guarantee scheme established under the Fisheries Operational
Programme was established in order to provide loan guarantees to finance eligible projects, for selected beneficiaries of
the Fisheries Operational Programme measures. Following the selection procedures FNGCIMM was appointed to manage
the guarantee fund. So far, FNGCIMM, gave 38 letters of guarantee amounting to 24,469,595 euro / 106 797 918 lei for
loans from 8 commercial banks totaling 34,414,824 Euro / 150 204 021 lei.
O.U.G. no.79 / 2009 on the regulation of measures to stimulate the absorption of funds under the RDP for renovation
and development of rural areas by improving the quality of life and diversification of the economy in rural areas. In order
to facilitate access to support financed by the RDP, guarantee funds may grant letters of guarantee in favor of
beneficiaries presenting signed financing contracts. The value of the letter of guarantee granted to each beneficiary will
be 110% of the advance financing provided for in contracts. So far, FNGCIMM, granted 795 letters of guarantee
amounting to EUR 419 663 692 / 1,840,378,464 lei for advance payments totaling Euro 381 512 447 / 1.673.071.331
lei.
Managed guarantee funds allocated by Ministry of Agriculture under Article 49 of Law No. 329/2009 to guarantee the
funding for farmers and processors of agricultural products to finance working capital. Guarantees are granted for
financing farmers and processors to investments in agriculture and agricultural production, excluding loans to finance
investments through measure 121 of the RDP.
Guarantees for intended beneficiaries in O.U.G. No.20 / 2013 regulating certain measures required for carrying out
projects with grants from the RDP and FOP. Program beneficiaries may be private beneficiaries of measures 121, 123,
312 and 313 of the RDP for issuing letters of guarantee required to beneficiaries to cash advance provided for in the
grant contracts, private beneficiaries of the Leader axis to issue letters of guarantee required to collect advance the grant
provided for in contracts for loans and investments needed to achieve the investment objectives financed from EAFRD
and FLAGs. FNGCIMM guarantee can be up to 80% of the loan and up to 2.5 million euro / beneficiary.
Guarantees for intended beneficiaries in O.U.G. no.43 / 2013 on measures to develop and support family farms and
farmers' access to finance. The program beneficiaries are farmers and family farms. FNGCIMM guarantee can be up to
2.5 million Euro / beneficiary of that percentage of O.U.G. no. 43/2013: maximum 50% of the loan granted by financial
institutions for the purchase of agricultural land and less than 80% of the loan granted by financial institutions to farmers
for financing investments in agriculture and agricultural production, excluding loans to finance investments made by the
measure 121 of the RDP.
In the pre-accession period and the 2007-2013 programming period, FNGCIMM was involved in the management of the
two guarantee schemes financed by EU funds:
Credit Guarantee Fund settled up by the Ministry of Agriculture and Rural Development in support of the
implementation of RDP measures;
Guarantee scheme for bank loans for selected beneficiaries of the measures of POP, POP constituted and funded by the
European Fisheries Fund.
Programs with sources in administration7
12. The guarantees given by FNGCIMM are express, irrevocable, unconditional. FNGCIMM
comply with NBR Regulation 16/2012 so that guarantees from own sources are explicit,
irrevocable, unconditional, and the maximum coefficient for deduction from lender to
borrower exposure is 0.5.
FNGCIMM comply with the Commission's Communication no. 155/2 / 20.06.2008 on the
application of Articles 87 and 88 of the EC Treaty to State aid in the form of guarantees, so
that data from its own sources FNGCIMM guarantees covering credit risk up to 80% of the
funding and a maximum amount of 2,500,000 Euro. FNGCIMM apply the principle of
shared risk between the Fund and financier.
Guarantee characteristics
14. FNGCIMM guarantees Beneficiaries:
Beneficiaries of FNGCIMM guarantees granted from own
sources are all small and medium enterprises defined
by Law 346/2004, as amended and supplemented.
Beneficiaries guarantees from sources in administration
on behalf of the state are:
small and medium enterprises;
large enterprises;
NGOs (associations and foundations);
research institutes;
public authorities;
individuals.
FNGCIMM is the market leader in
Romania. FNGCIMM solidified its position
every year in Romania’s economic and
financial environment, watching with
consistency and determination fulfilling
its mission to support access to finance
of small and medium enterprises.
FNGCIMM played a counter-cyclical role
in supporting and financing the national
economy, acting on its imperfections.
The share of credits guaranteed by
FNGCIMM in the total balance of loans to
the SME sector (according to NBR) in
31.12.2013 is around 8%.
1
Beneficiaries
15. Capitalization available and the guaranteed volume carried from own sources and from
sources taken in administration, positions, in the last seven years, FNGCIMM as a
market leader between guarantee funds in Romania. On 31.12.2013, FNGCIMM
capitalization exceeded 217 million Euros and the multiplier level of capital was 3.4
times.
Achieving maximum multiplier level set by risk policies approved by the sole
shareholder, the Romanian state, namely 9, depends on the evolution of demand and
supply of credit to the corporate sector.
16. At the end of 2013, FNGCIMM have, in addition to its own sources, sources in
administration for providing guarantees worth 373.539 million lei.
17. FNGCIMM cooperates with 27 credit
institutions and three NBFIs. Increasing
workload was made possible by
increasing the number of financiers
partners who used FNGCIMM
guarantee.
Currently FNGCIMM has a network of
financing partners consisting of 27
credit institutions and three NBFIs:
Alpha Bank; Bancpost; BCR; BRD;
Carpatica; CEC; CreditEurope; Credit
Agrigole; Exim Bank; railway; Garanti;
ING; Pack; Italo Romena; Leumi; Libra;
Millennium; OTP; Piraeus; Procredit;
Raiffeisen; RIB; Romanian Bank; Next
Bank; Banca Transilvania; Unicredit;
Volksbank; Patria Credit IFN; Next IFN
capital; Small IFN Finance.
27 Partners
18.
19. Since inception, FNGCIMM recorded an upward trend of the economic and financial results.
Economic and financial viability of FNGCIMM is demonstrated by the steady growth of
income of the institution since its establishment until now, that trend is expected to
continue in 2014. The annual financial statements are audited by a firm from Batg Four.
Throughout the period 2007 - 2013, FNGCIMM reported profit for each financial year. The
financial results reflect the FNGCIMM had an sustained activity guarantee coupled with
increased concern for efficient risk management guarantee.
According to GD 1211/2001 republished on the settlement of FNGCIMM, company's annual
financial statements are audited exclusively by financial auditors, legal entities, approved
by the National Bank of Romania according to the law. The financial audit is presented to
the shareholder representative and published together with the annual financial
statements according to law. In the last 7 years FNGCIMM consolidated financial
statements have been certified by a Big Four firm and always the audit report contained an
unqualified opinion without reserves.
20. FNGCIMM activity has expanded steadily since the establishment so that at 30. 04.2014,
the amount of guarantees outstanding came to 13.73 billion lei. The balance value of
guarantees granted to SMEs at 31.12.2013 was 3.5 billion lei for a credit volume
contracted of 6.5 billion lei. At the end of 2013, the balance of guarantees provided by
FNGCIMM represents 0.79% of the National Gross Domestic Product, puting Romania on
the 4th place in Europe as compared guarantees outstanding to GDP.
21. On 30.04.2014, FNGCIMM have sold a total of 14,000 active guarantee contracts awarded from
its own resources for SMEs. On 30.10.2014, according to the statements of President FNGCIMM
, to Bursa newspaper, the institution has provided over 7,200 guarantees with a value of over
2,100 million lei, while in October 2013 the registered value was 3,500 million lei.
Evolution of guarantee contracts from
FNGCIMM own sources
22. The average value of a guarantee granted by FNGCIMM to SMEs in 2013 was
290,000 lei, while the average credit backed by the guarantee fund was
503.000 lei. The average value of guarantees granted to SMEs in 2013 was
about Eur 65,000 per SME.
23. In the period 2008-2013 the share of loans guaranteed by FNGCIMM in total loans granted by banks to SMEs
has increased from 2% to 8%.
24. Most guarantees issued by FNGCIMM cover between 70%
and 80% of the loan amount accessed by SMEs. The main
beneficiaries of FNGCIMM guarantees are
microenterprises, accounting for 52% of total guarantees
outstanding as at 31.12.2013.
As shown in the Figure below, above 52% of
the SME beneficiaries of FNGCIMM guarantees
are microenterprises.
25. Guarantee activity in our country experienced a dynamic that propelled her 4th in Europe in 2012 in terms of
guarantees outstanding to GDP ratio (1.3%), behind Italy (2.3%), Portugal (1.8%) and Hungary (1.4%). The
analysis was conducted based on reports of 39 members of AECM.
26. FNGCIMM supports Management Authorities in implementing complex financial instruments. Examples of guarantee
programs managed by FNGCIMM:
Romanian-Swiss SME Programme 2014 - 2019, or PREIMM, has the following specifications:
Department for Small and Medium Business Environment and Tourism has the capacity of Intermediate Organism fro
the program;
The investment loans is accessed through a big 3 Romanian Bank, CEC Bank, for a maximum value of 100,000 CHF /
beneficiary, equivalent in lei and granted for a maximum of 5 years;
The maximum amount of a guarantee given by FNGCIMM is 80% of the loan;
Eligible activities: manufacturing, healthcare, tourism and marketing systems / equipment-specific energy savings and
those using renewable energy resources to streamline its work.
Under the Emergency Ordinance no. 9 of 17 February 2010 approving Support Programme for beneficiaries of projects in
priority areas for the Romanian economy, financed from EU structural instruments earmarked for Romania, FNGCIMM
issued guarantees in favor of granting credit to eligible beneficiaries in the Programme. In 2011 and 2012 it was
allocated an annual ceiling of 300 million, and in 2013 a ceiling of 50 million. Through this program run by FNGCIMM,
Research Institutes were able to access bank loans to co-finance European projects under implementation.
27. Finding solutions to support innovation
in SMEs has been a concern for
FNGCIMM. 11% of allocated credit
guarantees for financing European
projects financed by the Sectoral
Operational Programme Increase of
Economic Competitiveness was
directed to Axis II - Research,
Technological Development and
Innovation for Competitiveness on the
following areas of intervention:
2.1 R & D partnerships between
universities / research institutes and
enterprises in order to obtain
applicable results in the economy;
2.2 Investments in RDI infrastructure
2.3 Access to RDI activities businesses
(especially SMEs).
2.3.3 Promoting innovation in
enterprises.
28. Startups guarantees
FNGCIMM backed start-ups through participation in the implementation of
complex financial instruments that included a grant component and a
component of credit guarantee. The Program SRL - D for stimulating the
establishment and development of microenterprises by young
entrepreneurs, approved by GEO no. 6/2011 to stimulate creation and
development of microenterprises by young entrepreneurs, micro
entrepreneurs belonging to debutant benefit from the following amenities:
Grant by AIPPIMM of a non-reimbursable financial allowances
representing more than 50% but not less than 10,000 euros, the value of
the business plan for the project, for which proof of financing sources is
requested;
FNGCIMM guarantees for loans granted by banks to beneficiaries to
achieve a business plans accepted by A.I.P.P.I.M.M., up to a maximum 80%
of the requested loan, in the amount of maximum 80,000 euros.
29. FNGCIMM supported European energy programs by guarantees from
its own resources or in behalf of the state. Since 2010, FNGCIMM
claimed credit guarantees energy, an area considered high risk by
banks due to legislative instability in the area. So far, FNGCIMM
granted 46letters of guarantee from its own resources amounting to
126 727 793 lei for SME loans amounting to 238 374 647 lei,
accessed through 8 partner credit institutions.
Given that in the Operational Programme for Increase of Economic Competitiveness,
Priority Axis 4, Key Area of Intervention 2 Harnessing renewable energy resources for
producing green energy, many eligible beneficiaries cited difficulties in securing co-
financing bank loans, FNGCIMM managed to intervene to support the provision of
guarantees from its own resources through partner banks to eligible recipients of the
program.
30. FNGCIMM has been appointed manager of the POP guarantee scheme for
bank loans eligible beneficiaries of the Operational Programme for Fisheries.
Between 2011 - 2014, FNGCIMM was appointed following the tender
organized by the Ministry of Agriculture and Rural Development Guarantee
Scheme manager of bank loans to eligible beneficiaries of POP, with a
budget of 14 million Euro. By 2014, FNGCIMM, gave 38 letters of guarantee
amounting to 24,469,595 euro / lei for loans 106 797 918 through 8
commercial banks totaling 34,414,824 Euro / 150 204 021 lei of credits, so
a degree of multiplication of the European money (leverage ratio) 2.6.
Fishery
31. FNGCIMM has proven to have the needed technical capacity
(rules, procedures, internal software system) to carry out the
guarantee activity. Granting of guarantees by FNGCIMM is done
in compliance with rules and procedures developed by
FNGCIMM in accordance with the law and regulations of NBR.
The provisions contained in the legislation relating to the
characteristics of the program and how / guarantee scheme
FNGCIMM are transposed in the internal regulations so that
each employee involved in securing business know specific
details of the program / scheme.
At the same time, FNGCIMM conventions with patner banks
stipulates the flow of granting guarantees and obligations and
rights of the parties.
On 31.12.2013, FNGCIMM had a team of 164 professionals.
FNGCIMM assured that all employees are well trained, attending
annual training courses on various issues activity. In the year
2014 in view of the increasing volume of activity, FNGCIMM
team will be completed by 10 new posts.
The fund has a territorial network with national coverage. The
network of FNGCIMM is well represented in areas with potential
for development, consisting of 5 offices, 4 branches and three
subsidiaries.
FNGCIMM comply with corporate governance legal framework
defined by Law no. 31/1990 and NBR Regulation no.20 / 2009.
Adequate capacity to implement the financial
instrument, including organisational
structure and governance framework
providing the necessary assurance to the
managing authority
Criterion c)
32. FNGCIMM has experience in monitoring and reporting of information relating to
financial engineering measures provided for operational programs. FNGCIMM is able to
report differently depending on the specifications of each program administered
separately. Within guarantee schemes where it was selected as manager of financial
engineering measures within operational programs, the Fund is responsible for:
monitor and report quarterly to the Managing Authority situations on guarantees
given to beneficiaries of the measures of operational programs;
Management Authority shall annually, by 31 January, receive the situation and the
guarantees given exposure in the 12 months of the previous year;
Presents to Managing Authority, until November 15, an annual activity on specific
demands;
the last year of the guarantee scheme, FNGCIMM submit a report on the amount of
guarantees granted for each measure;
presents annually, by 31 January of the following year, an internal audit report on the
guarantee scheme.
33. FNGCIMM is a non-bank financial institution registered in
the Special Register of the National Bank of Romania.
FNGCIMM as non-banking financial institution, organizes
internal control ofits activities, manage significant risks and
organize internal audit work based on a uniform, consistent
with central bank regulations methodology.
FNGCIMM internal control enables the provision of reliable,
relevant, complete information to the structures involved
in decision-making within FNGCIMM and other authorized
users to whom they are sent. Internal control is performed
at each organizational structure of FNGCIMM by
implementing dual control and verification of the work
done and the direction of internal control and audit,
according to the Annual Plan internal control approved by
the Director General and the annual plan of internal audit
approved by the Board of Directors.
Identification and evaluation of significant risks is
done by taking into account internal factors (eg
complexity of the organizational structure, nature
activities, staff quality and its fluctuation) and
external factors (eg economic conditions, legislative
changes or related to the competitive environment in
the financial sector, technological advances). Risk
assessment process includes risks that are identified
in the HQ of FNGCIMM and at branch level.
FNGCIMM has an appropriate risk management.
According to NBR Regulation no.20 / 2009 on NFIs, as
amended and supplemented, FNGCIMM:
a. use a system of authorization procedures for
operations risk;
b. has a system for setting exposure limits and
monitoring them, and the competence levels of
exposure approval. Limits set in the activities and / or
departments / secondary offices should be linked to
those set out in the general level of the Fund;
c. a reporting system to measure risk exposures and
other risk-related issues to appropriate management
levels;
d. criteria for staff recruitment and remuneration, to
establish appropriate standards for training,
experience and integrity;
FNGCIMM has a Risk policy that covers both legal
regulations and prudential requirements of the NBR
and a number of provisions / criteria / limits
established by the Fund in implementing best
practices in risk mangement.
Criterion d) Existence of an
effective and efficient internal
control system
34. FNGCIMM accounting system complies with the regulations of National Bank of Romania and the Ministry of
Finance. Organization and management within FNGCIMM accounting and accounting policies adopted in the
FNGCIMM arise from accounting regulations issued by bodies for authorization, supervision and regulation,
namely the National Bank of Romania and the Ministry of Finance.
Accounting system used provides a chronological and systematic recording of all transactions according to their
nature, any activity based on supporting documents covered by legislation.
FNGCIMM financial statements are in accordance with International Financial Reporting Standards adopted by
the European Union. Annually, FNGCIMM publish consolidated financial statements in accordance with
International Financial Reporting Standards.
To provide a true heritage and the results obtained, both internal users and external financial statements
published by FNGCIMM meet the criteria on intelligibility, relevance, reliability and comparability of information
and generally accepted accounting principles: prudence, consistency, continuity activity etc.
Internal control over accounting activity is organized and manifests as self-control, chain control and
hierarchical control. In chain control is performed horizontally level to executive, and is based on segregation of
duties and responsibilities.
The accounting and reporting of FNGCIMM is based on a software solution that integrates workflows in a unified
system. The system is developed on Microsoft technology and allows separation of the accounts for each
government program, or every program that manages sources in the administration. The system has the
following characteristics:
• It is flexible and allows easy adaptation to legislation and the Romanian business environment;
• The information is structured from product guarantee customer guarantee request, eliminating inconsistencies
and redundancies while ensuring premises and to be a real support in making the decision;
• Make sure the projection of entire activity reports required by legislation specific reports, documents required
by internal procedures. Functionality modules for presentation of financial statements in accordance with
International Financial Reporting Standards (IFRS) was certified in 2006 by KPMG Romania;
• Regular reporting solution covers situations of clients and assets under contract that guarantees the porfofoliu
reglemnetare organs or to other authorized users;
• The system integrates a business intelligence solution that provides support in decision making by providing
information and comparative statistics based on specific financial indicators of financial and banking
organizations. The implemented solution includes a complete set of analytical data (scorecard, analytic grid,
analytic chart, configurable reports and dashboards) that allow good control over information;
• The system provides an advanced level of security in the fields in the database.
Use of an accounting system providing
accurate, complete and reliable information
in a timely manner
Criterion e)
35. Agreement to be audited by Member States
audit authorities, the Commission and the
European Court of Auditors, without
prejudice to the provisions of Article 5(3)
Criterion f)
Since FNGCIMM is owned by the state, his work is regularly audited by the Court of Accounts.
For the activity of fund management community in order to provide guarantees, FNGCIMM is
subject to external audit conducted by the Audit Authority within the Court of Auditors.
36. Disclaimer:
"The information contained in this report has been produced by European Center for Services Investments and Financing – ECSIF Ltd., based on
data imported from different open data sources and have been interpreted and model by ECSIF. While ECSIF has made every effort to ensure the
reliability of the data included in this report, ECSIF cannot guarantee the accuracy of the information collected and presented. Therefore, ECSIF
cannot accept responsibility for any decision made or action taken based upon this report or the information provided herein. This presentation is
for the exclusive use of the persons to whom it is addressed and is intended for general information purposes only. It is not intended to constitute
legal or other professional advice and should not be treated as such. Appropriate legal advice must be sought before making any decision, taking
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provide any additional information or to update this presentation or any additional information or to correct any inaccuracies which may become
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