New State fund for SMEs

The Government has issued Decree 39, effective from July 1, on the organization and operation of the SMEs Development Fund.

The non-profit fund offers SMEs direct loans at low interest rates, equal to 80% of the lowest rates offered by four State commercial banks.

The maximum amount for each project or business plan must not exceed 80% of the total investment, while the total amount of loans offered to a single SME must not exceed 15% of the fund’s charter capital.

Apart from direct loans, enterprises may apply for indirect loans at certain commercial banks, which will be allocated capital by the fund.

Loan terms are determined based on the capacity of enterprises for recouping capital and paying off debt as well as the conditions of each project, but the term must not exceed seven years.

The SMEs Development Fund is aimed at supporting these firms in line with regulations, helping them receive, manage and use capital effectively. The fund is expected to drive SMEs’ growth up as difficulties with loan access are removed.