Africa-Press – Angola. The Ministry of Finance is recapitalizing the Credit Guarantee Fund (FGC), to ensure its solvency and financial robustness, said the Secretary of State for Budget and Public Investments, Juciene de Sousa.
Without advancing the recapitalization value, he only said that in the last 10 years, the FGC benefited, via the General State Budget (OGE), 300 billion kwanzas, which enabled it to issue 770 guarantees for Angolan companies.
“Given this social, economic relevance and national scope, we are recapitalizing the Fund to ensure its solvency and financial robustness, within the scope of the recapitalization and global reforms of the funds”, advanced Juciene de Sousa.
The official who took part in the signing ceremony of the Memorandum of Understanding between the FGC and the African Guarantee Fund (AGF) said during the referred period, the 10 years, the FGC promoted, in partnership with the network of commercial banks, the creation of around 20,000 jobs mainly in the agriculture, fishing, livestock and food industry sectors.
After the Angola Investe programme, he recalled, responsible for the emergence of projects that are still operational, he said that, currently, the country has nine instruments committed to promoting national production.
Among the financial instruments, he points out the Credit Support Program (PAC), the Commercial Agriculture Development Program and Notice nr.10 on the responsibility of the National Bank of Angola (BNA), which directs commercial banks to grant credit to the sector real economy.
These instruments, according to the State Secretariat, contributed to the reduction of imports, with emphasis on corn, mineral water and eggs.
According to Juciene Sousa, it was with this vision that the Angolan Government created the Credit Guarantee Fund, via Presidential Decree nr.78/12, of May 4th, to ensure the vitality of small companies through mechanisms of access to public guarantees which obeys strict, transparent criteria and professional management.
Regarding the signed Memorandum, he exhorted the FGC to make the most of the experience of the “Africa Garantee Fund” in terms of risk sharing mechanisms adopted for the different realities of our continent, aimed at supporting MSMEs, in their role as an engine of growth.
“We have expectations aimed at improving the way in which guarantees will be used, overcoming the difficulties of entrepreneurs in accessing credit”, he pointed out.
More funds and guarantees
The chairman of the Board of Directors of the FGC, Luzayadio Simba, admitted the existence of some risks associated with the activity, but considers the results obtained to be “encouraging”, which challenge the strengthening of the institution to intervene in the “triangular” relationship between companies, commercial banks and the FGC.
“ (…) Therefore, capitalization of the Credit Guarantee Fund is justified in the current context we are experiencing, so that we can stimulate the emergence of 500 new viable projects during the five-year period, so that the action of these initiatives have a significant impact on the economy and in the development of the country”, he said.
Luzayadio Simba said that around 300 billion kwanzas are expected to be made available in the short to medium term, with a view to issuing new guarantees, that is, 500 new viable projects for the next five years.
Currently, the Fund is holding conversations with various leaders of cooperatives and peasant associations, which will soon end with the holding of a consultation meeting, scheduled for the second quarter of this year.
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