With a special focus on the most sensitive part of the economy, micro, small and medium enterprises, the recovery of the economy from losses caused by the coronary virus pandemic is significantly contributed by the Guarantee Program, as a measure of the Government of the Republic of Srpska.
Regardless of whether they are intended to finance core business, working capital or investment costs, loans from commercial banks to businesses are available on specially tailored terms, while 70 percent of the guarantee on each individual loan is provided by the state, through the Guarantee Fund.
The goal of the Guarantee Program is to facilitate access to finance for businesses that, faced with a coronary virus pandemic, have had to adjust their business to the new situation and to completely suspend or minimize business activities.
In this way, the Guarantee Fund’s resources to banks reduce the risk, which enables businessmen easier and faster access to credit funds, necessary for further business in crisis circumstances.
According to the first data of banks included in the Guarantee Program, businessmen opt for this type of assistance by easing measures after returning to business activities, most often with the aim of adapting to a new market, which requires business transformation or payment of salaries to workers.
During the activities so far, the representatives of the Guarantee Fund of the Republic of Srpska have signed guarantee agreements with 11 commercial banks, which participate in the Guarantee Program of Srpska for mitigating the consequences of the coronavirus pandemic.
– The main goal of the Guarantee Program, created by the Government of RS, is to help companies overcome the difficulties they have fallen into. This is, after the direct support of the Government through the payment of taxes, contributions, and minimum wages to those whose business has been endangered or completely stopped, a new type of support to the economy. What we are doing in connection with the Guarantee Program should be separated from the regular activities of the Guarantee Fund, because here we are essentially acting only as a service of the Government of the Republic of Srpska – said Radivoja Krčmar, director of the Guarantee Fund of RS.
The value of the Guarantee Program in terms of the maximum amount of the guarantee is KM 50 million, and the target level of loans approved by banks and microcredit organizations from their own funds is KM 238 million.