Presentation of the CGCI-Pme Small and Medium Enterprises Investment Credit Guarantee Fund - Algeria:
The Investment Credits Guarantee Fund (CGCI-Pme spa) is a company created at the initiative of the Public Authorities by Presidential Decree 04 -134 of 19 April 2004 bearing the Caisse's statutes to support the creation and development of the SMEs by facilitating access to credit (statutory social object). It has a registered capital of 30 billion DA, subscribed up to 20 billion DA, 60% owned by the Treasury and 40% by banks (BNA, BEA, CPA, BDL and CNEP Bank) .
In addition, the possibility is given to
all banks and credit institutions of the place, to take a stake in the capital
of the Fund (Article 8 of the Presidential Decree). Its capitalization with
public dominance and the assimilation of its financial guarantee to a guarantee
of the State by the Law of Finances 2009 reinforce its signature of guarantor
and make it an institution of first order.
In 2011, the Caisse inaugurated a new
phase of diversification of its offering following the decision of the public
authorities to delegate the management of a Guarantee Fund dedicated to
covering agricultural financing. This decision is based on article 36 of the
CFL of 18 July 2011, which establishes the possibility for the Fund to back its
risks to funds that are matched by the State.
In this context, the SMP Investment
Credit Guarantee Fund is authorized to manage, on behalf of the State and for
any other donor agency, specialized guarantee funds intended to guarantee the
financing of the various sectors. activity. These funds are managed under an
agreement signed between the Caisse and the financial backer.
Missions and Activities of the CGCI Investment Credit Guarantee Fund:
The purpose of the Fund is to guarantee
banks and credit institutions the risk of default on the repayment of
investment credits with a maturity of less than or equal to 7 years, including
deferral periods and leases whose duration is less than 10 years contracted by
SMEs for the financing of their productive investment projects for goods and
services relating to the creation, extension and / or renewal of their
production equipment.
The maximum level of credits eligible
for the guarantee of the CGCI is set at 350 million DA. (Three hundred and
fifty million dinars). The limit of the guarantee is fixed at 250 million DA
weighted at 80% (guaranteed portion) for the credits granted for the financing
of the investment projects relating to the creation and 60% when it is a credit
granted to a developing SME (extension, renewal of equipment) as specified in
article 13 of the Presidential Decree N ° 04-134 of 19 April 2004. The premium
paid to the Caisse, under the risk cover is set at 0.50% on the outstanding
balance of the remaining credit. It is paid in flat (over the entire duration
of the credit) or annually in accordance with the provisions of Articles 14, 15
and 16 of the above-mentioned Presidential Decree. The credits granted by
non-shareholder banks may also be guaranteed by the Caisse in accordance with
the Article 10 of the aforementioned Presidential Decree and the general terms and
conditions of the CGCI guarantee. The real and / or personal security rights
are taken by the partner banks within the limits of the constituent elements of
the project. In the event of a claim, the realization of the collateral and the
related charges provided for in the credit agreement shall benefit the credit
institution and the Caisse in proportion to their share of the risk.
Legislation of the CGCI Investment Credit Guarantee Fund for Small and Medium Enterprises CGCI :
1- Presidential Decree N ° 04-134 of
April 19th, 2004 bearing statutes of the CGCI-SME Spa:
This Decree defines the statutes of the
Guarantee Fund for Investment Credits for small and medium-sized enterprises,
by abbreviation: CGCI-SME.
2 - The Orientation Law on SMEs N °
01-18 of 12 December 2001:
The purpose of this Act is to define the
small and medium-sized enterprises hereinafter referred to as "SMEs"
and the measures of assistance and support for their promotion.
3 - Law No. 2008-21 of December 30, 2008
on the Finance Law for 2009:
Art. 64. - Guarantee issued by the
Guarantee Fund for Investment Credits to banks and financial institutions to
cover the investment credits they grant to small and medium-sized enterprises,
as defined by Presidential Decree No. 2004 -134 of April 19, 2004, is
assimilated to a state guarantee.
4 - Ordinance N ° 09-01 of July 22, 2009
on the Supplementary Finance Law for 2009:
Art. 103. - The maximum level of the
financial guarantee granted by the Guarantee Fund for Investment Credits -
small and medium-sized enterprises - joint-stock company (CGCI-PME-spa) to
cover the loans contracted by SMEs for the financing of their investments, is
increased from 50 million DA to 250 million DA.
Art. 104.- The Guarantee Fund for
Investment Credits for small and medium-sized enterprises is authorized to
create entities dedicated to cover investment credit risks according to
specific sectors (tourism, agri-food, new technologies, etc.).
5 - Law N ° 2011-11 of 18 July 2011 on
the supplementary finance law for 2011:
Art. 36. - The provisions of article 104
of the ordinance n ° 2009-01 of 29 Rajab 1430 corresponding to the July 22nd,
2009 bearing complementary finance law for 2009, are modified and written as
follows:
Art. 104. - The Investment Credits
Guarantee Fund for small and medium-sized enterprises is authorized to manage,
on behalf of the State and any other donor agency, specialized guarantee funds
intended to guarantee the financing of projects. different sectors of activity.
These funds are managed under an
agreement signed between the Caisse and the financial backer.
The detailed rules for the application
of this article will be specified, as and when necessary, by regulation.
6 - The law n ° 13-08 of December 30th,
2013 bearing the law of finances for 2014:
Art. 65. - The guarantee fund for
investment credits of small and medium-sized enterprises-SMEs is authorized to
grant a guarantee to companies whose total assets are less than or equal to one
billion (1,000,000,000) AD.
Constitution of the guarantee subscription file :The subscription file to the CGCI Investment Credit Guarantee Fund is composed of:- The guarantee request made on a Caisse form (this document can be downloaded from the HER Fund website) and is accompanied by the following constitutive documents:The copy of the credit authorization granted.The balance sheets of the last three (03) financial years (assets, liabilities, TCR) for the case of development or extension of the company's activity.The opening balance sheet and the profit and loss account for the last 03 financial years (case of creation, development or extension of activity).The summary credit report of the bank highlighting the following aspects:Leader: age training, experience, heritage;Legal structure: form, distribution of capital, ownership of other companies by the partners; holding of other companies by the partners;
Project:
nature of the investment,
sector of activity, project structure, financing structure, (ANDI) scheme,
purpose (creation or development), project profitability and credit
repayability.
Detailed activity (market): products,
customers, suppliers, competitors;
Production apparatus:
main
characteristics, methods of ownership (owned equipment or leasing).
Indebtedness: table of bank and other
liabilities, types of loans, repayment schedules;
Comments concerning production
forecasts: assumptions, contracts obtained or planned, marketing method.
Criteria for eligibility for CGCI
financial guarantee
Eligibility criteria for the CGCI financial guarantee:
All medium-term investment credits or
leases meeting the eligibility criteria defined below are eligible for the Fund
guarantee:
The Company / CGCI Investment Credit
Guarantee Fund:
Is eligible for the guarantee of the
Fund, the investment credit granted to Small and Medium Enterprises as defined
in the law of orientation on the promotion of the small and medium enterprise n
° 01/18 of 12/12/2001 and satisfying, in particular, the following criteria:
Company of recent constitution in
ex-nihilo with regard to creation, or Company having at least a certified
balance sheet and / or fiscal certified in the matter of development or
extension of activity.
Company belonging to all sectors of activity except:
Projects whose financial arrangement benefits from a system of
support and support from the state, the agricultural sector, the fishing sector
Commercial activities;
Consumer credits.
· Company whose annual turnover
excluding taxes is less than 2 billion DA, · Company whose total annual balance
does not exceed 01 billion DA (1 000 000 000 DA DA). · Independent company: the
a company whose capital is not owned 25% or more by one or more companies that
do not meet the definition of SMEs.
These criteria are assessed on the date
of the submission of the guarantee application to the Caisse on the basis of
the latest known accounting documents; the last financial year not to have been
closed for more than twelve months at that date.
Credit / Investment Credit Guarantee Fund for Small and Medium Enterprises CGCI:
The following are eligible for the Caisse's guarantee: The tangible investment credit (furniture, real estate, equipment, development) for which the initial repayment term is equal to or less than seven (07) years, including deferral period; lease of furniture whose duration of initial repayment can not exceed ten (10) years. The limit of the guarantee weighted with 80% or 60% according to the nature of the investment project (Creation or development), is capped at 250 million DA for a maximum amount of the credit of 350 million DA.The credit institution is required to ensure compliance with the prudential rules usually observed in the granting of credit in the choice of the company receiving the secured credit.
Securities / CGCI Investment Credit Guarantee Fund:The financial guarantee of the CGCI:
Investment Credit Guarantee Fund does not replace the usual sureties related to the purpose of the secured credit (real and personal sureties).These usual sureties are collected and / or collected by the credit institution and on its behalf. In the event of a claim, they benefit the credit institution and the Caisse in proportion to the coverage rate (80% or 60%).
The Caisse's guarantee only benefits the
credit institution. It can not be invoked by third parties, in particular by
the Company and its guarantors, to contest all or part of their debt.
The guarantee of the CGCI Investment Credit Guarantee Fund is subject to:
terms and conditions included in the
credit agreement;
general terms and conditions of the
Caisse's guarantee;
provisions of the partnership agreement
(Loan Guarantee Fund / Credit institution);
provisions in the notification of the
guarantee.
Under penalty of forfeiture of the Fund
Guarantee, the special conditions of the credit agreement may not be modified
without the express agreement of the Caisse.
Any modification of the conditions
precedent to the mobilization of the credit (investment credit), or the putting
into force of the equipment for the financial leasing, not expressly authorized
by the Caisse entails as of right the forfeiture of the guarantee.
Subject to the provisions of Article
five (05) of the General Conditions of the Guarantee and under penalty of the
forfeiture of the Guarantee of the Fund, any modification of the terms of
repayment of the secured credit shall be brought to the attention of the Caisse
in a period not exceeding two (02) months from the date of said modification.
Intervention procedure of the CGCI Investment Credit Guarantee Fund:
A. CGCI - Banks - SME relationship:
1st principle: the CGCI has no direct
relationship with the SME, it prohibits, so as not to alter, to intervene in
the relationship of the bank with his client.
Second principle: the CGCI guarantees
only SME investment financing that generates sustainable added value (viable
and profitable projects). agricultural activities, fishing activities as well
as commercial activities and consumer credit are excluded from its scope.