Africa-Press – Angola. A memorandum of understanding to promote and facilitate access to credit for Micro, Small and Medium Enterprises (MSME’s), cooperatives and individual entrepreneurs, was initialed, this Tuesday, in Luanda, by Banco Millennium Atlântico (BMA) and the Credit Guarantee Fund (FGC).
Beneficiaries will be able to request financing of up to 50 million kwanzas from Banco Millennium Atlântico (BMA), with an automatic public guarantee from the FGC.
The protocol, initialed by the President of the Board of Directors (PCA) of the FGC, Luzayadio Simba and the vice-president of the Executive Committee, of Banco Millennium Atlântico (BMA), Eder Samuel de Sousa, has a risk coverage of up to 80% of the financed capital.
The terms of the agreement include the promotion of financial inclusion and reconversion of the informal economy, through the Support Line for Sustainable Projects (LAPS), designed by the FGC, to cover the insufficiency of real guarantees that MSMEs, who request credit, with automatic approval of public guarantees, in financing of up to two hundred million kwanzas.
On the occasion, the PCA of the FGC, Luzayadio Simba highlighted that the initiative is part of the process of simplifying access to public guarantees, which the institution has been promoting.
“In recent times, the FGC has been reducing bureaucracy for access to public guarantees and this memorandum aims to strengthen the granting of credit to the economy, through a joint mechanism with the institution, which allows the BMA to issue automatic guarantees”, he explained..
For this purpose, he said, a joint platform was created between the BMA and the FGC, which, as the bank approves a credit, automatically also has a public guarantee.
According to the manager, for financing above 50 million, the project should deserve another joint analysis by the FGC and the BMA.
The PCA revealed, on the other hand, that 250 guarantees were issued in 2023 and that the target for this year is a thousand, around 75 percent.
“The FGC will continue to strengthen relations with banks and financial promoters, which is why we have been signing similar agreements with several banking institutions, such as Banco Crédito do Sul and Banco Comercial Angolano (BCA)”, he highlighted.
In turn, the vice-president of the Executive Committee of Banco Millennium Atlântico (BMA), Eder Samuel de Sousa, stated that the conditions have been created to finance projects in the most diverse sectors of the economy.
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