The Council of Ministers approved in today’s meeting the details of the state guarantee for the processing industry sector, following the normative act for the amendment of the 2024 budget, where the allocation of the fund of 4 billion lek was foreseen for this guarantee.

The Ministry of Finance announced through a press release that “the value of the Guarantee of ALL 4 billion covers up to 70% of loans from the banking system, with a margin of no more than 1.5% above the base rate”.

“The state guarantee instrument enables businesses in the processing industry to receive financial support through lending with favorable conditions, in function of the realization of investments for the further automation of production lines, as well as the availability of liquidity for the purchase of raw materials. The value of the Guarantee of ALL 4 billion covers up to 70% of loans from the banking system, with a margin of no more than 1.5% above the base rate. The repayment term is foreseen up to 7 years for loans for investment and up to 3 years for loans for the purchase of raw materials.

The State Guarantee Instrument will be implemented through agreements that will be related to the 11 commercial banks operating in the banking system, where the businesses of the processing industry sector will have the opportunity until the end of October 2024 to apply to them for loans with favorable conditions, while the final deadline for concluding loan contracts has been set until the end of this year,”
the Ministry of Finance informs.