Guarantee Mechanism For Bolstering The Financial Structure

This guarantee mechanism is intended to cover the risk of loans made by credit institutions to undertakings operating in the industrial and industry-related services sectors through their rescheduling as part of the pilot program for their financial restructuring.

1- Undertakings eligible under the guarantee mechanism :

Eligible for the guarantee are the undertakings meeting the following criteria:

  • Undertakings which have been granted bonus agreements with financial restructuring reserves under the Upgrading Programme,
  • Undertakings which have not benefiited from any tranche of the premiums awarded by the FODEC (Industrial Competitiveness Development Fund) under the said Programme,
  • Undertaking whose financial restructuring programme has been approved by the relevant departments of the Ministry of Industry, Energy and SMEs,
  • Not being classified as a company in economic difficulties.
2- Size of the investments concerned :

Eligible for funding under the guarantee mechanism are investments of up to 10 Million Dinars, including net fixed assets.

3- Types of loans eligible for guarantee:

Short, medium and long-term loans

4- Forms and intervention methods of the guarantee mechanism :
  • Refinancing of one half of the loans and assumption of treasury interest on half the outstanding  principal amounts  of eligible loans, in accordance with the agreed apportioning of coverage  of  the loans deemed irrecoverable  between the guarantee mechanism  and the credit institution, upon initiating  recovery proceedings against the debtor.
  • Assumption of 50% of the outstanding loan amounts and the cost of judicial proceedings initiated for the recovery of the loan.