The ministry, in a statement to which VerAngola had access, refers that capitalization took place "through a special issue of public debt securities".
"As part of the operationalization of measures to stimulate the economy and boost its potential, the Ministry of Finance makes public that it carried out yesterday [Wednesday] the reinforcement of the capitalization of the Credit Guarantee Fund (FGC), in the amount of 50 billion Kwanzas, through a special issue of public debt securities", reads the statement.
Thus, the note adds, "that financial institution will be in a position to reinforce its intervention, ensuring that companies and individual entrepreneurs benefit from financing from commercial banks for the materialization of projects aimed at the productive sector".
According to the guardianship, the guarantee fund is implementing and operationalizing the Credit Guarantee Promotion Acceleration Plan (PAFGC), "designed to serve in a sustainable and balanced way, the participation of micro, small and medium-sized companies".
The areas of agriculture, livestock and manufacturing make up the "priority segments" of the plan, and "projects worth up to 10 million kwanzas will have automatic approval of the FGC public guarantee, based on the interest rate provided for in Notice No. 10/22 of the National Bank of Angola".
The aforementioned plan is "aligned with the emergency measures announced by the executive and aims to ensure that micro farmers and peasant families participate decisively in increasing national production, food self-sufficiency and economic growth in the country", says the statement.
In addition, the guardianship points out that the measure also includes the increase of "credit guarantee coverage from 75 to 80 percent of the financed capital", allowing beneficiaries "to access financing under favorable conditions for the implementation of the respective projects and to contribute to the improvement of the business environment".
The fund's capitalization will allow it to expand its services in "five potentially agricultural regions" in order to combat "regional asymmetries and promote sustainable economic development", the statement also highlights.
