MEDF established two guarantee funds

Better access to the financial services

MEDF has established guarantee funds from military risk and lack of supply (security), which is hoped to encourage the financial institutions to promote loans to potential beneficiaries whose businesses are located in the former regions of crisis or those that have a lack of supply (security). The guarantee funds can be used after the agreements between MEDF and the financial mediators (Stopanska Banka A.D. -Bitola; Tutunska Banka A.D. - Skopje; IK Banka A.D. - Skopje and the thrift Moznosti established on 16 June 2004) have been signed. The total available amount of the guarantee funds is 500 000 euros.

In the course of its work, MEDF has identified the need to establish guarantee funds. Since November 1998, when the fund was established, 9 485 428 euros have been given which covered 2 180 beneficiaries of the MEDF credit line, among which 1 437 are individual farmers and small entrepreneurs, 133 small enterprises and 610 micro-enterprises. Credits were available only to those beneficiaries that besides the good business idea, could offer an appropriate education, according to the policies of the financial institutions. That was the reason why MEDF started activities for establishing the guarantee funds. Better marketing of the MEDF credit line is expected with the operationalization of the guarantee funds, but also a more courageous performance of the banks in this segment of the market.