Portfolio guarantees within Fund of Funds

SID Bank as a guarantee instrument within Fund of Funds introduces unconditional portfolio guarantees in the amount of the total guarantee quota of 61,9 mio EUR that have been made available to the chosen commercial bank and savings institutions (Nova Ljubljanska banka, Delavska hranilnica and Primorska hranilnica Vipava) for financing of sole proprietors, SMEs, cooperatives and institutions. These final beneficiaries will be able to improve their access to funding through participating financial institutions by loans in the amount from 30.000 EUR to 10 mio EUR. Thus they can benefit from more favorable loan conditions, since SID Bank, as the financial intermediary of the guarantee financial instrument, will assure the partial coverage of loss (62,5 %) for credits to eligible final beneficiaries, which will favorably affect the level of interest rates and particularly the value of collateral demanded by the financial institutions.
Selected financial institutions will be able to use the portfolio guarantees only for loans that will be approved for financing operating expenses or investments (to reinforce company's activities, to implement new projects, market breakthrough or achievements that contribute to improving the competitiveness of company or creating or maintain the permanent jobs). Within the agreements with the selected financial institutions, milestones for placements of loans to final recipients are defined along with other mutual commitments and obligations.