Africa-Press – Angola. A memorandum of understanding that will allow the creation of conditions for the automatic granting of partial credit guarantees to Micro, Small and Medium Enterprises (MSME’S), Cooperatives and Individual Entrepreneurs was signed, this Tuesday, in Luanda, by the Fund for Guarantee and Credit (FGC) and Banco YETU.
With risk coverage of up to 90 percent of the financing, the agreement provides for the automation of public guarantees, in an amount of up to 200 million kwanzas.
The signing of the agreement also provides for promoting national production and promoting products with the “Made in Angola” seal, through the Support Line for Sustainable Projects (LAPS), designed by the FGC, to cover the insufficiency of real guarantees that MSMEs , Cooperatives and Individual Entrepreneurs present this when applying for credit.
On the FGC’s side, the document was initialed by the President of the Board of Directors (PCA), Luzayadio Simba, and by the administrator for the Business Area, Eduardo Katalahary Mohamed, while on the Yetu bank side, the Executive Directors, Agostinho Pires Filipe, signed and João da Costa Ferreira.
Speaking to the press, the PCA of the FGC, Luzayadio Simba, explained that in 2023 it was possible to support 216 projects, representing close to 106 billion kwanzas whose sole objective was to promote national production and reduce hunger, poverty and unemployment.
In turn, the Executive administrator of the YETU bank, João da Costa Ferreira, said that the institution he heads has, this year, a credit portfolio valued at 21 billion kwanzas to support Small and Medium-sized enterprise projects, a relatively higher number to 2023, which did not provide figures.
In relation to non-performing credit, he said it is a challenge for banks, and more signatures of protocols with the FGC could facilitate access to credit through guarantees and through risk sharing.
He explained that the number of non-performing loans at YETU Bank is less than one percent” he said.
It should be noted that LAPS, designed by the FGC, is the result of the Guarantee Promotion Acceleration plan that the institution outlined when it was capitalized by the executive and aims to respond to the reinforcement of the fight against food insufficiency, increased employability and the reconversion of the economy informal.
The FGC is a non-banking Angolan financial institution, created by Presidential Decree No. 78/12 of May 4, with the purpose of granting Public Guarantees to MSMEs and individual entrepreneurs who dedicate their activities to the productive sector and work to promote the economy real.
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