The Guarantee Fund For Tourism Activities (FGAT)

The Guarantee Fund for Tourism Activities, set up under article 18 of law N° 2015-30 of August 18, 2015, the amending Finance law for 2015, is a guarantee scheme for operating loans repayable over a period of seven years with a two-year grace period, granted by banks to enterprises active in the fields of tourist accommodation and animation, category “A” travel agencies, listed tourist restaurants and craft enterprises.

The beneficiary company must not be the subject of legal proceedings in respect of its bank debts, nor of measures under law no. 95-34 of 17 April 1995 concerning the reorganization of companies in difficulty.

1- Activities eligible for the guarantee:

Are eligible for the FGAT guarantee:

  • Companies operating in the  areas of accommodation and  tourist entertainment,
  • Category “A” travel agencies,
  • Classified tourist restaurants,
  • Artisanal enterprises.
2- Loans eligible for guarantee:

New loans repayable over a seven-year period with a two-year grace period, intended to cover operating expenses, for which a guarantee application has been made during the period from July 1, 2015 to December 31, 2016.

3- Forms and Intervention methods of the FGAT:
  • Refinancing of one half of the loans and assumption of treasury interest on half the outstanding principal amounts of loans covered by the guarantee, in accordance with the agreed apportioning of coverage of the loans deemed irrecoverable between the FGAT and the bank, upon initiating recovery proceedings against the debtor.
  • Assumption of 60% of the irrecoverable amounts of the loans or equity participations and 50% of the costs of prosecution for debt recovery.