Fonds de Garantie

The guarantee fund is a tool for reducing the financial risks associated with financing micro-enterprises. It provides additional guarantees to banks, alongside those offered by the entrepreneurs themselves, which include:

• The equipment pledge is made first in favor of the bank, then in favor of the National Entrepreneurship Support and Development Agency.
• Pledge of movable equipment.
• Comprehensive insurance covering all project equipment against various risks.

• The micro-enterprise is enrolled after bank approval.
• The micro-enterprise's contribution rate to the fund is set at 0.35% annually, calculated based on the amount and value of the bank loan, and is paid in full once.
• The banks' contribution rate to the fund is set at 1% of the outstanding debt annually.
• In case of payment default (3 unpaid six-month installments):
  • The fund conducts a field visit.
  • The bank compensates 70% of the remaining amount.
  • It carries out the follow-up process with the micro-enterprise in difficulty.

The Mutual Caution Fund intervenes when a repayment default is recorded, according to a series of organized procedures as follows:

• The fund receives a formal request from the bank after declaring non-payment of three six-month installments.
• The fund conducts a field visit to verify the micro-enterprise's situation and its inability to repay.
• The bank is compensated by the Fund up to 70% of the remaining debt (principal + interest).
• After compensation, the bank transfers the remaining debt rights to the fund.
• The fund undertakes the tasks of accompanying and monitoring the micro-enterprise in difficulty after compensation, in order to restoring its activity and enable it to repay its financial obligations.